Big Banks OK'd for Dividends, Stock Buybacks; Four Big Banks in Pittsburgh Can Return Profits to Their Shareholders through Dividend Payments and Stock Repurchases after the Federal Reserve Determined the Financial Institutions Have Sound Plans to Withstand a Deep Economic Crisis. [Derived Headline]

By Fleisher, Chris | Tribune-Review/Pittsburgh Tribune-Review, June 29, 2016 | Go to article overview

Big Banks OK'd for Dividends, Stock Buybacks; Four Big Banks in Pittsburgh Can Return Profits to Their Shareholders through Dividend Payments and Stock Repurchases after the Federal Reserve Determined the Financial Institutions Have Sound Plans to Withstand a Deep Economic Crisis. [Derived Headline]


Fleisher, Chris, Tribune-Review/Pittsburgh Tribune-Review


Four big banks in Pittsburgh can return profits to their shareholders through dividend payments and stock repurchases after the Federal Reserve determined the financial institutions have sound plans to withstand a deep economic crisis.

PNC Financial Services Group, Bank of New York Mellon, Citizens Financial Group and Huntington Bancshares were among 31 large U.S. banks whose capital plans passed the Fed's annual "stress tests."

The Fed gave Morgan Stanley only conditional approval because of what were considered weaknesses in its plans dealing with risks. Morgan Stanley has until the end of the year to submit a new capital plan.

The Fed rejected plans by the U.S. divisions of two European banks, Germany's Deutsche Bank and Spain's Santander.

The tests are designed to push banks to bolster their reserves and restore badly shaken confidence in the banking system since the 2008 financial crisis. They are important because the tests determine whether banks can return capital to shareholders.

Wednesday's announcement followed the first round of results last week that measured banks' ability to absorb losses and continue lending under extreme duress. All 33 banks passed muster.

Minutes after the results were released late Wednesday, banks announced plans to return profits to shareholders.

Downtown-based PNC intends to increase the quarterly cash dividend on common stock by 4 cents to 55 cents per share starting in the third quarter. It plans to buy back up to $2 billion in shares, including repurchases of up to $200 million related to employee benefit plans. Stock repurchases reduce the number of outstanding shares in a company, boosting the value of the ownership stake of investors and giving them a greater share of earnings.

"We believe our proposed capital actions this year will result in PNC maintaining a strong payout ratio relative to other banks subject to this test," PNC spokesman Fred Solomon said in an email.

Bank of New York Mellon, which is based in New York but has more than 7,000 employees in Pittsburgh, intends to increase the quarterly cash dividend on common stock two pennies to 19 cents per share, starting in the third quarter. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Big Banks OK'd for Dividends, Stock Buybacks; Four Big Banks in Pittsburgh Can Return Profits to Their Shareholders through Dividend Payments and Stock Repurchases after the Federal Reserve Determined the Financial Institutions Have Sound Plans to Withstand a Deep Economic Crisis. [Derived Headline]
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.