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U.S. bank investors hope Fed stress test results lead to big payouts

Average Sentiment: Highly Positive (2.40)
Tuesday 09:03 GMT
Category: Economy

On Thursday, the Fed is scheduled to begin releasing results from its two-part annual stress test, which was adopted in response to the financial crisis, to gauge banks' ability to weather an economic storm that could threaten the stability of the system.

Analysts say they do not expect the Fed to announce any explicit changes to the stress test, but they do expect higher payouts. According to their estimates, the Fed could allow banks to distribute nearly as much capital to shareholders over the next year as they generate in profits, a benchmark not hit since before the 2008 crisis.


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