Fed Plan Lets Healthy Banks Boost Dividends

The Federal Reserve has adopted a plan to let healthy banks boost dividends paid to investors.


Banks would need to show the Fed's bank examiners that they're in good financial health and that they have adequate capital to absorb potential losses — even after paying the dividend.

The Fed oversees Wall Street's biggest banks, including Citigroup , Bank of America , JPMorgan Chase , and Wells Fargo .

During the financial crisis, banks cut their dividend payments. By boosting their payments, banks may be able to attract new investors.