Biggest US Banks Boost Dividends After Fed Stress Tests

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00:00Tom, what have we seen from the banks and the resulting payouts being upped?

00:05Yeah, well, basically across the board, payouts are up. The one that probably jumped out the most

00:10is Goldman, which is increasing its dividend effectively by a third from $3 a share up to

00:15four. So that's a pretty big jump. And, you know, obviously the shares previously when it was

00:20announced they passed their tests had already risen. What will be interesting to see today is

00:24as the sort of markets digest these increases, like, will there be any more kind of up list

00:29in the shares? Has it all been priced in? So has it all been priced in? But what other optimism is

00:34priced into banks? Tom, the third best performing sector so far this year is financials up about

00:419 percent. There's been widespread hopes for deregulation for the U.S. and really across

00:47the globe. How apt are those hopes? Do they seem like they'll be playing out? Yeah, I think the sort

00:54of posture generally towards finance has obviously dramatically shifted since, you know, kind of

00:59the dark dark years after the financial crisis. And I think it's that deregulation piece, which

01:04maybe is the most tangible. You know, there's a lot of talk about the support and finance

01:08in the finance industry. But what's most interesting is when, you know, the regulators actually take

01:12action. I'm sitting here in London. There's certainly been a push for that. Obviously in

01:16the U.S. there's been a real kind of move towards that, which you could really contrast with

01:21what, you know, under the Biden administration, they were trying to do with the Basel rules.

01:24It now looks like those Basel rules might not even be implemented in kind of the extreme

01:28case for the U.S. banks. And that's cascading across the world. So, you know, almost every

01:33region you look at finance, you know, and what's quite a turnaround is now seen as there's

01:38a lot of trends pushing it towards, you know, higher profits thanks to, you know, sustained

01:43higher interest rates. And of course, you know, the politics and the regulation sort of easing

01:48against banks.