Dividend bonanza for US bank investors after Fed stress test

Some of the biggest banks in the US have been given the green light to pay their largest dividends since the financial crisis, following the Federal Reserve's 'stress test'.

Investors in Goldman Sachs, J.P. Morgan and Morgan Stanley are set for a dividend windfall after the US Federal Reserve granted the banks’ capital return requests. They all had to make some adjustment to their plans to ensure that their capital reserves met the Fed’s minimum standards. However, Bank of America will have until September to resubmit its capital plan after the Fed found “certain weaknesses” in the bank’s structure, according to the BBC. The ‘stress test' examined whether banks could continue to lend to consumers and businesses even under stressful market conditions....