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Big Banks React to Stress Tests; Nike Jumps, Jordan Slumps -- ICYMI

Michael Brown

Financials had risen earlier after most of the 35 lenders supervised by the Federal Reserve passed the second phase of stress tests that will allow them to increase dividends and share buybacks. The Fed said Thursday, June 28, it had identified "widespread and critical deficiencies" in the capital-planning practices of DB USA, Deutsche Bank's U.S. subsidiary. As a result, DB USA won't be able to pay out regular dividends to the German parent company at least until next year, a senior Federal Reserve official told reporters.