The nation’s biggest banks can get back to business as usual.
“The banking system is strongly positioned to support the ongoing recovery,” the Fed’s vice chair for supervision, Randal K. Quarles, said in a statement.
That means the nation’s biggest lenders — including JPMorgan Chase and Bank of America — can increase the amount of cash they pay out to shareholders through stock buybacks and dividends.
Governmental efforts to prop up the economy, including enhanced unemployment benefits and stimulus payments, meant the kinds of loan losses that could have threatened the financial system never emerged.
In March, the Fed’s governors unanimously approved plans to end limits on buybacks and dividends after the second quarter as long as banks passed their so-called stress tests — the annual evaluations established by the Dodd-Frank financial reform law established after the 2008 financial crisis.
Randal K, Quarles, Dodd, Frank
Federal, JPMorgan Chase, Bank of America