- Last Thursday evening's stress test results were just the warm-up act for the CCAR decisions due today at 4:30 ET. While all 31 banks subjected to the extra scrutiny of the stress test passed, it doesn't mean the Fed will approve their capital return plans, and while some - Goldman Sachs, Zions, and Morgan Stanley - barely squeaked by, it doesn't mean the Fed won't approve their buyback and dividend proposals.
- After the CCAR results are released, expect most of the group of 31 to announce their capital return plans.
- For foreign lenders with U.S. units - Deutsche Bank and Santander come to mind - the Fed only has a say into what the subsidiary sends back to the parent, not what the parent ultimately returns to shareholders.
- XLF +0.6%, KBE +0.45%, KR +0.4%.
- ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, IAT, IAI, SEF, IYG, FXO, FNCL, KBWB, QABA, FINU, KCE, KRU, RWW, KBWR, RYF, KBWC, FINZ, KRS
- Previously: Stress test roundup: How the lenders stack up vs. last year (March 5)