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Bank shares surge after most get the go ahead from the Fed to raise dividends, buybacks

Evelyn Cheng

Of the major banks, Wells Fargo, Citigroup, Bank of America and J.P. Morgan Chase received approval for their capital return plans. The Federal Reserve objected to Deutsche Bank's proposal, while Goldman Sachs and Morgan Stanley received conditional approval. The biggest U.S. banks announced plans to buy back tens of billions of dollars in stock and hike their quarterly dividends after passing an annual stress test by the Federal Reserve.