Banks announcements following Fed’s “Stress Tests”
Following Federal Reserve “Stress Tests”, Morgan Stanley, JPMorgan Chase and Bank of America issued press releases informing that:
Morgan Stanley Announces Share Repurchase of Up to $3.1 Billion of Common Stock and the Increase of Its Quarterly Dividend to $0.15 Per Share
Morgan Stanley announced that it received no objection from the Board of Governors of the Federal Reserve System to the Firm’s 2015 Capital Plan. This capital plan included a share repurchase of up to $3.1 billion of common stock for the five quarters beginning in the second quarter of 2015 through the end of the second quarter of 2016, as well as an increase in the Firm’s quarterly common stock dividend to $0.15 per share from the current $0.10 per share, beginning with the dividend expected to be declared in the second quarter of 2015.
JPMorgan Chase Plans Dividend Increase and $6.4 Billion Capital Repurchase Program
JPMorgan Chase & Co. (NYSE: JPM) announced that the Federal Reserve Board had informed the Firm that it does not object to the Firm’s adjusted 2015 capital distribution plan and that the Firm’s Board of Directors intends to increase the quarterly common stock dividend to $0.44 per share (up from the current $0.40 per share), effective the second quarter of 2015, and to authorize the repurchase of up to $6.4 billion of common equity between April 1, 2015, and June 30, 2016. The equity repurchase program would include shares repurchased to offset issuances under the Firm’s equity-based compensation plans.
Bank of America Authorizes a $4 Billion Common Stock Repurchase Program
The Federal Reserve Board (Fed) has informed the company that it completed its 2015 Comprehensive Capital Analysis and Review and it did not object to the company’s capital plan for the period from the second quarter of 2015 through the second quarter of 2016. This plan includes the $4 billion stock repurchase program and maintaining the common stock dividend at the current rate of $0.05 per share per quarter. The Fed also asked Bank of America to submit an additional capital plan by September 30, 2015 addressing certain weaknesses identified in the company’s capital planning process. If Bank of America does not make material progress in addressing these key weaknesses, the Fed may restrict the company’s capital distributions.
Source: Morgan Stanley, JPMorgan Chase, Bank of America
