Daily News: December 4, 2013

Reuters: U.S. Fed Approves Goldman/JPMorgan Capital Plans

Reuters reported that the U.S. Federal Reserve said it approved new capital plans by Goldman Sachs and JPMorgan Chase, after initially ordering the banks to fix flaws in their capital planning processes.

Reuters added that the plans are meant to determine how the biggest U.S. banks would fare in a financial meltdown. In March, the Fed said Goldman and JPMorgan could move forward with plans to buy back shares and pay dividends.

But regulators said the stress tests, or Comprehensive Capital Analysis and Review (CCAR), showed both banks had flawed processes for determining capital payouts to shareholders and told the two banks to fix the problems and submit new plans by the end of the third quarter, Reuters said further.

To read the entire Reuters story, click here.