Federal Reserve confirms that all of the 34 major banks pass their annual CCAR macro stress tests.

Apple Boston

2017-05-31 06:36:00 Wed ET

The Federal Reserve rubber-stamps the positive conclusion that all of the 34 major banks pass their annual CCAR macro stress tests for the first time since the global financial crisis of 2008-2009. These banks are Citigroup, JPMorgan Chase, Bank of America, Wells Fargo, and Goldman Sachs etc, which respond to this great news by increasing their hefty dividends and share repurchases (upward 65% from the previous fiscal year). Fed approval motivates all of the largest banks to achieve healthy equity capital levels and most major banks to substantially improve their ongoing capital adequacy plans.

The only exception is Capital One, which needs to resubmit its capital adequacy plan later. In response to this approval, many of these banks have announced to distribute more than 85% of current net income to their shareholders in the form of cash dividends and share repurchases in the next few years. Whether the Trump administration overhauls Dodd-Frank macroprudential stress tests with leaner financial regulation remains a hidden catalyst for the current stock market rally for banks, insurance companies, and other financial institutions. Fiscal stimulus and lower corporate income taxation boost bank stock prices.

Overall, bank stocks are likely to fare better under the Trump administration that intends to make financial deregulation more efficient for long-term sustainable operating profitability, market valuation, and asset growth. Fintech innovation can serve as a core moat for the U.S. financial sector's competitive advantage in the next decade.

 


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More

Main reasons for share repurchases

Apple Boston

2022-09-25 09:34:00 Sunday ET

Main reasons for share repurchases

Main reasons for share repurchases Temporary market undervaluation often induces corporate incumbents to initiate a share repurchase program to boost the

+See More

Many billionaires choose to live below their means with frugal habits and lifestyles.

Chanel Holden

2019-12-04 14:35:00 Wednesday ET

Many billionaires choose to live below their means with frugal habits and lifestyles.

Many billionaires choose to live below their means with frugal habits and lifestyles. Those people who consistently commit to saving more, spending less, an

+See More

Mark Granovetter follows the key principles of modern economic sociology to analyze social relations and economic phenomena.

Charlene Vos

2023-02-21 08:27:00 Tuesday ET

Mark Granovetter follows the key principles of modern economic sociology to analyze social relations and economic phenomena.

Mark Granovetter follows the key principles of modern economic sociology to analyze social relations and economic phenomena. Mark Granovetter (2017) &

+See More

Carl Icahn mulls over steps to shake up the board of SandRidge Energy after it adopts a counter poison pill.

Jacob Miramar

2017-11-29 07:42:00 Wednesday ET

Carl Icahn mulls over steps to shake up the board of SandRidge Energy after it adopts a counter poison pill.

The octogenarian billionaire and activist investor Carl Icahn mulls over steps to shake up the board of SandRidge Energy after the oil-and-gas company adopt

+See More

Google CEO Sundar Pichai makes his debut testimony before Congress.

John Fourier

2018-12-15 14:38:00 Saturday ET

Google CEO Sundar Pichai makes his debut testimony before Congress.

Google CEO Sundar Pichai makes his debut testimony before Congress. The post-mid-term-election House Judiciary Committee bombards Pichai with key questions

+See More

What are our proprietary alpha stock signals?

Andy Yeh Alpha

2020-09-11 10:22:00 Friday ET

What are our proprietary alpha stock signals?

AYA fintech network platform provides proprietary alpha stock signals and personal finance tools. In recent times, we have completed our fresh website up

+See More