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The largest U.S. banks on Monday announced plans to pay a special $ 2bn over the next quarter after the Federal Reserve last week released restrictions on shareholders established during the Covid-19 epidemic.
The move reaffirms the confidence of U.S. lenders, who think they can afford to repay large sums of money to their shareholders and remain comfortable with Fed-regulated measures.
Last Thursday’s release released the results “Stress tests” to banks, which prompted the largest US bank to easily Restrictions on payment and purchase.
Morgan Stanley has announced it is increasing its three-quarters increase by 70 cents a share and is promoting the growth of the reorganization program from $ 10bn to $ 12bn.
James Gorman, a senior, said Morgan Stanley “has made a lot of money in the last few years and now has one of the biggest assets in the industry”.
Some major banks have also announced that cashiers will pay more but most have not followed Morgan Stanley in increasing the size of their repayment programs.
Goldman Sachs raised its share to $ 2 from $ 1.25, JPMorgan Chase increased its share to $ 1 from 90 cents, and Bank of America increased its share to 21 cents from 18 cents.
Wells Fargo increased its shares to 20 cents, although the bank cut the share last year from 51 cents. Like Morgan Stanley, the bank also said it was preparing about $ 18bn in 12 months from the third quarter to resell its shares.
For the 11 banks that exchanged cash on Monday, the increased shares will allow shareholders to receive an additional $ 2bn in the third quarter, according to a Financial Times estimate.
Relocating their assets is more expensive for banks than it is during the financial crisis, because their shares are more expensive. Stock prices have been steadily rising since September, sometimes upward, in the wake of rising trade and destructive activity and the prospect of US steel.
Many banks had already announced a number of stock exchange programs since the end of the final exams in December, including JPMorgan, which signed one of the $ 30bn, and Bank of America approved $ 25bn.
The shares of Morgan Stanley gained 2.5% in sales after working in New York and Goldman rose 0.6%, while other major shares in the bank were flat. Wells property was down 0.7 percent.
Jamie Dimon, chief executive of JPMorgan, said: “Our old capital management is still the same – have money and grow the leading businesses in the market… Pay more, and return the remaining money to shareholders.”
David Solomon, Goldman’s chief executive, said: “We are encouraged by the progress made in reducing our business growth as evidenced by the recent effects of stress.”
A Fed analysis last week confirmed that the 23 banks involved in the project could suffer about $ 500bn in consolidation and meet basic requirements.
Update Colby Smith reports in New York
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