(Reuters) – Shares in the S&P 500 bank index .SPXBK rose about 2% on Friday after the U.S. Federal Reserve approved the capital plans of the biggest U.S. banks, giving them a clean bill of health.
M&T Bank Corp (MTB.N) was the only one of the index’s stocks down slightly as at least one analyst said its payout plan was lighter than expected. JPMorgan Chase & Co (JPM.N), Bank of America (BAC.N) and Citigroup (C.N) were the group’s biggest boosts with gains over 2%, followed by advances of about 2% for Wells Fargo & Co (WFC.N).
All 18 banks undergoing the Fed’s annual stress test were given the all-clear, although the central bank placed conditions on Credit Suisse’s (CS.N) U.S. operations after finding weaknesses in its capital planning processes.
The Fed’s stamp of approval for Deutsche Bank (DBKGn.DE) was a major boost since it flunked the test in 2015, 2016 and 2018.
JPMorgan and Capital One (COF.N) passed the test though both had to pare back their capital plans, after…
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