Planning Processes Weakness Seen in JPMorgan and Goldman

Many of the biggest banks in the United States got the green light from the Federal Reserve Thursday on plans to return profits to shareholders.

Two banks, JPMorgan Chase and Goldman Sachs, got yellow lights. The Federal Reserve did not object to their plans but is requiring them to submit new plans that will address what the regulators say are weaknesses in their planning processes.

Ally Financial and BB&T Corporation had their plans rejected by the Federal Reserve.

The Federal Reserve said that fourteen had submitted plans that satisfied its tests. Those banks are American Express Company; Bank of America Corporation; The Bank of New York Mellon Corporation; Capital One Financial Corporation; Citigroup; Fifth Third Bancorp; KeyCorp; Morgan Stanley; The PNC Financial Services Group; Regions Financial Corporation; State Street Corporation; SunTrust Banks; U.S. Bancorp; and Wells Fargo.

Several banks immediately announced their plans to make dividends and buy back shares.

CNBC

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