JPMorgan Chase unveils $50 billion buyback, Goldman Sachs raises dividend after Fed stress test

JPMorgan Chase announced a $50 billion share repurchase program and boosted its quarterly dividend Wednesday, hours after the Federal Reserve's annual stress test cleared all 32 large banks as adequately capitalized to survive a hypothetical recession. Goldman Sachs also raised its dividend following the Fed results.

The Fed's stress test found the banking sector remains well capitalized, giving institutions the green light to return capital to shareholders. JPMorgan's $50 billion buyback represents one of the largest repurchase authorizations among major banks and signals management's confidence in excess capital levels following the regulatory review.

Goldman Sachs similarly moved to increase shareholder returns through a dividend hike, though specific figures were not disclosed in the initial announcement. The synchronized capital return announcements reflect the industry's strengthened balance sheets since the 2023 regional banking turmoil.

The stress test simulated a severe recession scenario across the nation's largest financial institutions, evaluating their ability to maintain lending capacity during economic downturns while meeting minimum capital requirements.