AYA Analytica financial health memo July 2019
As of July 2019, this regular podcast is available on our Andy Yeh Alpha fintech network platform . All the 18 systemically important banks pass the annual Federal Reserve stress tests . Many of the largest lenders announce higher cash payouts to shareholders in the wake of the stress test results as of mid-2019. The total cash dividends and share repurchases can exceed $150 billion. In response, Deutsche Bank experiences 4%+ share price gains, and JPMorgan Chase, Bank of America, and Goldman Sachs each reap sharp share price increases about 2%. All these banks now maintain more than 4.5% common equity Tier 1 capital ratios, and their supplemental leverage ratios are well above the 3% regulatory minimum requirement. As the annual Federal Reserve stress test results indicate, all of the systemically important banks hold sufficient core capital to safeguard against extreme losses that might arise in rare times of severe financial stress. As a result, the Federal Reserve expects these ba...