Daily News: March 7, 2013

Banks Said to Weigh Defying Fed With Dividend Disclosures


Bloomberg reported that the largest U.S. banks are weighing whether to disregard a Federal Reserve request and announce their dividend plans shortly after the central bank’s stress tests are released, citing people with knowledge of the process.

The article said the Fed asked 18 firms, including JPMorgan Chase and Goldman Sachs, to wait until next week, even though the lenders will get preliminary word today about whether their capital plans were approved.

Bloomberg added that bank executives are concerned that investors could be confused and are considering whether securities laws may require prompt disclosure of their plans for dividends and share repurchases, citing its anonymous sources.

To read the full Bloomberg article click here.