US bank investors hope Fed stress test results will lead to big payouts

Washington

INVESTORS are hoping that the Federal Reserve will allow big US banks to put an estimated US$150 billion in idle capital towards stock buybacks, dividends and profit-boosting investments in the coming weeks after conducting a regular examination of financial strength.

On Thursday, the Fed is scheduled to begin releasing results from its two-part annual stress test, which was adopted in response to the financial crisis, to gauge banks' ability to weather an economic storm that could threaten the stability of the system. The results will be the first since Republican President Donald Trump took office.