The first round of this year’s stress tests are now over. With all 34 of the banks passing it, investors could soon learn whether the nation’s biggest banks will increase the amount of capital they return to shareholders by way of dividends and share buybacks.
News on this front could come out as soon as Wednesday, when the Federal Reserve releases the results from the second round of the stress tests, the Comprehensive Capital Analysis and Review. It’s in this stage that banks seek regulatory approval to accelerate the rate at which they return capital to shareholders.
