Fed Stress Test Trips Up Some Big Banks’ Plans

Among the banks getting approval for their capital plans were Citigroup Inc. (NYSE: C) and Bank of America Corp. (NYSE: BAC). American Express Co. (NYSE: AXP) received approval to pare back its stock repurchase plan.

J.P. Morgan already had received approval to repurchase $6 billion in stock and boost its quarterly dividend from $0.30 to $0.38 a share, but the bank’s CEO warned that it may have to cut its plans after it prepares a new capital plan at the end of the third quarter. Goldman will also submit a new plan at the same time.

Bank of America plans to repurchase up to $5 billion in common stock and $5.5 billion in preferred stock. The bank’s quarterly dividend of $0.01 will not change.

Citigroup plans to buy back $1.2 billion in common stock through the end of the first quarter of next year and plans no change to its $0.01 quarterly dividend.

Shares of J.P. Morgan are trading down about 2% in the premarket this morning, at $50.06 in a 52-week range of $30.83 to $51.00.

Goldman’s shares are trading down about 1.6%, at $151.62 in a 52-week range of $90.43 to $159.00.

Bank of America is trading up 3.7% at $12.56, a 52-week high, in a current range of $6.72 to $12.44.

Citigroup is trading up fractionally at $47.50 in a range of $24.61 to $47.92.