Feds Ding Big Banks on Stress Tests
Most passed, but not all with flying colors. In its second round of fiscal health exams, the Federal Reserve asked three U.S. banks to tweak their capital levels, and is requiring Bank of America to resubmit its spending plan in September. Led by Citigroup, many of the stronger institutions responded with big dividend increases and stock buybacks. Only two flunked outright — the U.S. arms of Deutsche Bank and Santander — signaling a banking system better equipped to weather future financial crises.