The heart of the U.S. financial system got a seal of approval from the Federal Reserve Wednesday, prompting major U.S. banks to unleash a flood of dividend increases and more than $23 billion in stock buybacks on their shareholders.
In the second phase of the Fed's so-called stress tests, 29 out of 31 top lenders got the thumbs up to spend their cash on shareholders.
Within minutes of the release of the results of the tests, at least nine major banks either increased their quarterly dividends, announced new stock repurchase plans — or both
Banks got the go-ahead to shovel money at investors again Wednesday — and they're jumping at it — reshaping the way investors will perceive the long cash-restrained sector.
Now that all the banks have gotten a clean bill of health from government stress tests, most are cleared to hand more to investors in the form of higher dividends and big share buybacks. Banks are wasting no time funneling money back to investors — making their shares look relatively more attractive again.
To put it in layman's terms...BANKS. ARE. GIVING. MONEY. AWAY! LOL!
An excerpt from this same article....just a few lines down....
The merits, or problems, of stock buybacks aren't what matters, now. It's that banks are again cleared to return money to shareholders, and their health is allowing some to make big moves, says Erik Oja of S&P Capital IQ.
Yea, I mean, after all, this is normal. Banks give money away all the time. That's how they make money. They give money away. LOL!
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