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KeyCorp (KEY), State Street (STT), Goldman Sachs (GS), JPMorgan (JPM), and BB&T (BBT) make...

KeyCorp (KEY), State Street (STT), Goldman Sachs (GS), JPMorgan (JPM), and BB&T (BBT) make RBC's list of best-capitalized banks - those that the Fed this month should allow dividends/buybacks of 75-100% of earnings. WFC, FITB, and MTB are in the middle of the pack and should be allowed payouts of 50-75%. Capital laggards - BAC, C, and COF - may only be allowed payouts of 10-30% of earnings.
Comments (6)
  • Wonder where this information came from?
    5 Mar 2013, 08:02 AM Reply Like
  • ...to Blue Okie....I got mine from Market Watch on TD Ameritrade...but it's probably common news today.......do you think there is some kind of conspiracy going on....??...BluTopaz.
    5 Mar 2013, 09:09 AM Reply Like
  • what does RBC know we don't know ? I thought that until very recently, BAC was the best capitalized US Bank apart from being a pure play on the US economy which is much better performing than most others instead of being in 60 different markets like Citi.

     

    Frankfurt Germany
    5 Mar 2013, 10:42 AM Reply Like
  • Read the sentences closely and you will see they refer to "permitted" returns of capital when talking about the first group of banks but omit this word when talking about BAC and C (asterisks added for emphasis):

     

    "... J.P. Morgan Chase and BB&T Corp., [are] expected to be *permitted* to make payouts of between 75% to 100% of earnings."

     

    "... Bank of America, Citigroup and Capital One Financial, are expected to only make payouts of 10% to 30% of earnings."

     

    Someone seems to have assumed Ronald Orol believes banks intend to return the maximum possible legal portion of their earnings to shareholders. This may or may not be a valid assumption about Mr. Orol's intention when he wrote his article.
    5 Mar 2013, 03:08 PM Reply Like
  • Colin, I still do not get it why BofA is labelled as the least capitalized US bank by RBC when the published numbers say exactly the opposite in terms of Basel III capital
    6 Mar 2013, 10:45 AM Reply Like
  • Banks are a crapshoot today! I'm long BBT and WFC but am going slowly
    10 Mar 2013, 11:24 AM Reply Like
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