Fed passes Goldman, JPMorgan capital plans but with conditions
AFPWASHINGTON--The Federal Reserve on Monday said it had passed the revised capital plans of JPMorgan Chase and Goldman Sachs, eight months after sending them back due to weaknesses.
December 4, 2013, 12:04 am TWN
In its March stress tests of the top U.S. banks, the Fed had raised questions about how the two planned to allocate capital, which includes their programs for dividends and share buybacks to reward investors.
Both JPMorgan and Goldman received only conditional approvals, and were required to submit new plans by the end of the third quarter “to address weaknesses in their capital planning processes.”
Those weaknesses, the Fed said in March, “were significant enough to require immediate attention.”