Banks Clear 2024 Stress Test: Will Payouts be Bigger This Time?

Wall Street’s largest banks are ready to return excess capital to shareholders via dividends and share repurchases as all 31 cleared the Federal Reserve’s 2024 Stress Test. The outcome of this annual exercise shows how much capital banks need to be healthy and dictates how much they can return to shareholders.The stress tests, mandated under the Dodd-Frank financial services law, were introduced in the aftermath of the 2008 financial crisis. It evaluates banks' capital adequacy, liquidity and risk managemen ...