Bank of America is being required to resubmit its capital plan to the Federal Reserve before the central bank will let it increase shareholder returns, while Deutsche Bank and Banco Santander have failed their stress tests, the Federal Reserve announced Wednesday. The Fed said Bank of America had deficiencies including loss and revenue modeling practices and in its internal controls. Santander had "widespread and critical deficiencies" across the capital-planning process, and Deutsche Bank had "numerous and significant deficiencies" in its Deutsche Bank Trust arm. Bank of America will have until the end of September to address the weaknesses if it wants to increase dividends and/or stock buybacks. The Fed also revealed that Goldman Sachs , J.P. Morgan Chase and Morgan Stanley resubmitted their capital plans -- effectively, lowered planned shareholder distributions -- in order to pass the test.See MarketWatch's live blog of the stress-test results and bank dividend announcements.
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