Passed stress tests: JPMorgan, Goldman Sachs and other major banks increase dividends and repurchase shares

After the results of the Federal Reserve's annual assessment were released, JPMorgan, the largest lender in the United States, increased its quarterly dividend from $1.50 to $1.65 per share, and Goldman Sachs raised its dividend from $4.50 to $5. JPMorgan also approved a new $50 billion stock repurchase program, effective from July 1. Wells Fargo increased its dividend from 45 cents to 50 cents, and Morgan Stanley also increased its dividend from $1 to $1.15. The Federal Reserve's stress test, established after the 2008 financial crisis, showed that all banks under review can maintain adequate capital to withstand the impact of a hypothetical economic recession. This test typically determines how aggressively banks can return capital to shareholders through dividends and stock buybacks. The assessment requires banks to evaluate hypothetical crisis scenarios and estimate potential losses based on their business portfolios.