By Dhirendra Tripathi
Investing.com – Citi (NYSE:C) was the sole large bank trading lower in Tuesday’s premarket trading while others gained on raising payouts to shareholders.
Citigroup stock was trading 0.4% weaker as it stood out for not raising its payout to shareholders – at least not yet – while all others announced they will. The moves were made possible by the Federal Reserve’s judgment last week that all of them had sufficiently strong balance sheets.
Morgan Stanley (NYSE:MS) stock was the biggest gainer, rising 3% after its decision to double its dividend to 70 cents a share. Wells Fargo (NYSE:WFC) too will double its dividend and was up 1% premarket.
Goldman Sachs (NYSE:GS) was up more than 1%. It plans to increase its common stock dividend to $2 per share from $1.25.
JPMorgan (NYSE:JPM) and Bank of America (NYSE:BAC) were up around 0.2% each. They also said they will hike their payouts.
Last Thursday, the Fed said after conducting its latest stress tests that the large banks could continue lending to households and businesses even during a severe recession.
The Fed’s statement came after it subjected the banks to three stress tests over the last year.
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