Banks Ramp Up Payouts, Testing Boundaries Of What Regulators Will Tolerate

According to a report by Reuters, an annual stress test of banks introduced by US regulators after the 2007 to 2009 financial crisis to prevent taxpayer bailouts has become a fight over how quickly lenders can return capital to shareholders. Boosted by a buoyant US economy, tax cuts and record profits, the country's largest banks are ramping up payouts to shareholders through dividends and share buybacks.