Fed gives the green light

Morgan Stanley delivered the biggest surprise to investors, however, saying it would double its dividend to 70 US cents (RM2.90) a share in the third quarter of 2021. Some analysts had been expecting a boost to about 50 US cents (RM2.07).

NEW YORK: Morgan Stanley, JPMorgan, Bank of America, Goldman Sachs and Wells Fargo said on Monday they were hiking their capital payouts after the US Federal Reserve gave them a clean bill of health following their annual “stress tests” last week.

Analysts and investors had expected the country’s largest lenders to start issuing as much as US$130bil (RM540bil) in dividends and stock buybacks from next month after the Fed last week ended emergency pandemic-era restrictions on how much capital they could give back to investors.