Monday, September 22nd14.8°C
23284
22455

JPMorgan, Goldman to resubmit plans

JPMorgan Chase and Goldman Sachs need better plans for coping with a severe recession, the Federal Reserve said Thursday, giving the banks until September to revise them.

The announcement came as part of the Fed's so-called "stress tests," its annual check-up of 18 of the country's big banks. The government runs the tests to see how the banks would fare in a bad economic downturn. As a result of the tests, it also tells each bank whether it's allowed to raise its dividend, the quarterly payout it gives to stockholders, or buy back more of its own shares.

Overall, the Fed approved requests outright from 14 of the banks, including Citigroup, Wells Fargo, Morgan Stanley and Bank of America. Senior Fed officials painted a picture of a healing industry, saying the banks had made great strides since the tests were started in 2009.

JPMorgan and Goldman, both based in New York, are allowed to increase their dividends and buy back their stock. That privilege would be withdrawn only if they didn't submit new capital plans that satisfy the Fed.

JPMorgan Chase & Co. said it had received permission to raise its quarterly dividend to 38 cents per share, from the current 30 cents, and to buy back up to $6 billion worth of its own stock. Goldman Sachs Group Inc. didn't give specifics about its plans.

Both the banks have emerged from the financial crisis not unscathed but better than many of their peers. Goldman currently pays a quarterly dividend of 50 cents per share, by far the highest of any of the six mega-banks. JPMorgan is second.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX15129.00-136.35
S&P CDNX928.09-26.97
DJIA17172.68-107.06
Nasdaq4527.689-52.10
S&P 5001994.29-16.11
CDN Dollar0.9063+0.0006
Gold1218.80+0.90
Oil91.50-0.91
Lumber332.20+5.60
Natural Gas3.901-0.007

 
Okanagan Companies
Pacific Safety0.17+0.01
Knighthawk0.01-0.005
QHR Technologies Inc1.27-0.10
Cantex0.04-0.01
Anavex Life Sciences0.2195-0.0035
Metalex Ventures0.05-0.01
Russel Metals35.37-0.38
Copper Mountain Mining2.40-0.26
Colorado Resources0.16-0.005
ReliaBrand Inc0.0206-0.0043
Sunrise Resources Ltd0.02-0.005
Mission Ready Services0.27-0.02

 



23480

FEATURED Property
20825593997 Gallaghers Parkland Drive
3 bedrooms 3 baths
$907,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Is this a fair offer from ICBC?

“Is this a fair offer from ICBC?”…. “How much should I settle for?”… “What is my claim worth?” These are just some of the questions I regularly get as...


Disruptive innovation

Last night I was privileged to be able to speak at the Greater Westside Board of Trade business awards dinner. Photo: ContributedI talked about Innovation and Collaboration which are two very interes...


Executors and their duties

There will be a time when you will need to decide who you should appoint as executor of your Will. As well, there may be a time when you will be asked by someone to act as the executor of his or her W...

_








Member of BC Press Council


22771