U.S. banks to pay extra $2 billion in quarterly dividends after Fed’s green light

Stress tests showed last week that the U.S. banking system could sustain another crisis with its current capital buffers

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Five of the six largest U.S. banks said Monday they would hike their payouts after the Federal Reserve last week lifted previous temporary restrictions on dividends and share buybacks.

The outlook: The stress tests, the Fed decision and the banks resuming their payouts to shareholders illustrate the strength and resilience of the U.S. economy’s recovery, which is seen growing by nearly 7% this year by most international organisations and independent economists.

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