The Federal Reserve said on Wednesday it gave the permission to 31 out of 33 big banks in the United States to implement plans for share buybacks and dividends, but that Morgan Stanley was told to revise its scheme due to "weaknesses" in the internal process. The financial giant had capital returns cleared, however it will face a freeze if it doesn't adjust to regulatory demands.
The two entities which failed the stress test are German Deutsche Bank and Spanish Banco Santander's units in the U.S. The Fed again dismissed their capital plans, just like one year ago. M&T Bank, based in Buffalo, New York, used a mechanism to revise its plan and managed to win the central bank's approval.
Image: EPA / Andrew Gombert
