Fed Testing Investor Payday Gets Released

By Author: Jack cook
Total Articles: 15
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Both, the major banks of the United States Of America as well as the investors has welcomed with open arms the decision of the Federal Reserve to release the stress which was there because of the results of the tests. After this announcement, many banks also announced that they now have plans to raise the dividends and also spend billions of dollars as far as share buy backs are concerned.
From the side of the Fed, from a total of 19 banks around 15 of them were given passing marks which including banks such as , Bank of America Corp, JPMorgan Case & Co and also Wells Fargo & Co. the banks which are a part of the losing lot were MetLife Inc, which is the largest life insurer company of the nation as well as Citigroup Inc, which is on the third number among the top banks of the country.
First ones were JPMorgan, which is the biggest bank of the United States and the strongest as well, to make an announcements that after the release, they have been given a clearance that they can raise their dividend by 20 per cent and spend a sum which is around12 billion dollars on buying back stock in the year 2012 as well ...
... as 3 billion dollars in the starting three months of the year 2013
After the announcement by the Fed was made public, the shares of all the banks went high up, touching the sky. The KBW Bank Index of financial stocks which are large-cap, and are inclusive of most of the banks that were taking the stress test, went up by 4.6 per cent before the closing of the market, that already gained 15.2 per cent when the year had started.
Very much contrary to this, the banks that did not clear the ruling by Fed had to face the trouble of their shares going down. For instance, the shares of the Citigroup had gone down by 5.3 per cent after just an hour of the release of the result of the test. Get easy loan by sending a simple text massage apply for text loans
A senior official of Fed was of the view that was very much concerned that even before they made any kind of an announcement, JPMorgan had given out its decision, so they and the central bank were of the view that come information may have been leaked. While the others felt it could have been because of the miscommunication.