Betsy Graseck, a bank analyst at Morgan Stanley, says JPMorgan Chase is delivering "double-digit return on equity." Graseck talks with Bloomberg's Tom Keene and Sara Eisen on Bloomberg Radio's "Bloomberg Surveillance."
Citigroup Inc. , the third-largest U.S. bank, may distribute as much as $64 billion to shareholders through dividends and buying back shares through 2014, according to Betsy Graseck , a Morgan Stanley analyst.
Bank of America Corp. fell the most since November 2012 after suspending plans for a dividend increase and $4 billion of share repurchases because of an error in its stress-test submission to the Federal Reserve.
The six largest U.S. banks may return almost $41 billion to investors in the next 12 months, the most since 2007, as regulators conclude firms have amassed enough capital to withstand another economic shock.
The Federal Reserve, which cut its target for the federal funds rate to a zero-to-0.25 percent range on Dec. 16, 2008, said last month that rates would remain “exceptionally low” at least through late 2014. While the unprecedented period of near-zero rates is meant to aid an ailing economy, it poses challenges for banks, insurers, pension funds, and savers.