Jul
02
All-Clear for Big Banks Raises Fears of a Return to Risk
ByIt took a decade — and $200 billion in fines — but the big banks are back.
The Federal Reserve’s passing grade for all 34 of the institutions it checks annually for financial soundness — the first all-clear since the Fed tests began in 2011 — is a watershed moment.
While some of the consequences will be felt sooner than others, they will be far-reaching. The immediate winners include investors as well as bank executives, who could see their already ample pay packages expand further.
Even as the broader market fell Thursday, bank stocks surged as investors cheered the big dividend increases announced by JPMorgan Chase, Wells Fargo, Citigroup and others following the Fed’s statement…
