Tag Archives: Federal Reserve System

Business, Finance, Occupation & Industry

Fifth Third Announces 2013 CCAR Capital Plan

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By Business Wirevia The Motley Fool

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Fifth Third Announces 2013 CCAR Capital Plan

No Objection from Federal Reserve to Company’s Capital Plan

CINCINNATI–(BUSINESS WIRE)– Fifth Third Bancorp (NAS: FITB) announced today that the Board of Governors of the Federal Reserve System (“the Federal Reserve“) did not object to the proposed potential capital actions from April 1, 2013 through March 31, 2014 (the “CCAR period”) included in Fifth Third‘s capital plan submitted in January under the Comprehensive Capital Analysis and Review (“CCAR“) process. Fifth Third also announced that its company-run internal stress test results under the Dodd-Frank Act stress testing rules are being disclosed on a Form 8-K published contemporaneously with this release.

In comments related to Fifth Third‘s announcement regarding its 2013 capital plan under CCAR, Kevin Kabat, CEO of Fifth Third Bancorp, said, “Our capital plan reflects our strong capital base, profitability and earnings generation, which enable us to return excess capital generation to shareholders while retaining more than sufficient capital to support ongoing business opportunities and balance sheet growth. The plan included a number of potential actions which were designed and intended to maintain a strong capital position, while moving our capital structure further toward new Basel III standards and reducing our overall cost of capital and common shares outstanding. We believe our plan for capital management and retention is balanced and prudent given our expectations, our capital position under current and proposed regulatory capital rules, and the current economic outlook.”

2013 CCAR Capital Plan

Fifth Third included in its capital plan the following potential capital actions for the period beginning April 1, 2013 and ending March 31, 2014, subject to Board approval and other factors including regulatory developments and market conditions.

  • The potential increase in the quarterly common stock dividend, which will be considered by the Board at its scheduled quarterly meeting in June
  • The potential repurchase of up to $750 million in trust preferred securities (TruPS), subject to the determination of a regulatory capital event, and replacement with the issuance of a similar amount of Tier 2-qualifying subordinated debt
  • The potential conversion of the $398 million in outstanding Series G 8.5 percent convertible preferred stock into approximately 35.5 million common shares issued to …read more
    Source: FULL ARTICLE at DailyFinance
Business, Finance, Occupation & Industry

American Express Plans to Increase Quarterly Dividend by 15 Percent and Buy Back up to $4.0 Billion

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By Business Wirevia The Motley Fool

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American Express Plans to Increase Quarterly Dividend by 15 Percent and Buy Back up to $4.0 Billion of Common Shares in 2013

NEW YORK–(BUSINESS WIRE)– American Express Company (NYS: AXP) said today that the Board of Governors of the Federal Reserve System did not object to its 2013 capital plan to increase the Company’s quarterly dividend to 23 cents per share, to repurchase up to $3.2 billion of common shares during the last three quarters of 2013 and to repurchase up to an additional $1.0 billion in the first quarter of 2014. The Company also said that it expects to repurchase approximately $800 million of common shares during the first quarter of 2013 under the Company’s 2012 capital plan.

The dividend increase would amount to 3 cents per share, or 15 percent. The share repurchases in 2013 would be in line with the amounts that were actually repurchased last year under the 2012 capital plan. Dividends and share repurchases are subject to approval by the Company’s board of directors.

As indicated in the Federal Reserve report issued earlier today, the 2013 capital plan would generate a minimum Tier 1 common ratio of 6.42 percent under the Federal Reserve’s “severely adverse stress scenario” during the nine-quarter forecasting period through the fourth quarter of 2014.

The 2013 capital plan revises an initial plan that was submitted to the Federal Reserve by American Express in January of this year. The initial plan had included a quarterly dividend of 23 cents, share repurchases of up to $4.7 billion during the last three quarters of 2013 and up to $1 billion in the first quarter of next year.

The Company prepared the initial plan using the Federal Reserve’s severe stress scenario, and basing it on the Company’s own internal analysis of operating performance. This internal analysis yielded a minimum Tier 1 common ratio of 9.2 percent during the forecasting period, above the 5 percent minimum threshold established by the Federal Reserve. However, the Federal Reserve, using its own models and analysis, concluded that the Company’s initial plan would have generated capital ratios below the minimum thresholds for at least one quarter during the nine-quarter forecasting period. Under the Federal Reserve’s guidelines, and as indicated in the Federal Reserve report issued earlier today, the Company revised and resubmitted its plan.

Both the Company and …read more
Source: FULL ARTICLE at DailyFinance

News, Politics, Government

The Fed, Act II, Scene I: The Art Of Perception!

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By Mike Patton, Contributor

In my last article, we discussed the events that preceded the creation of the Federal Reserve System in 1913. In this post, I’ll dig a bit deeper into the actions of our government and the Fed, and explain why I believe we could be headed for trouble. Perception: The Hand Is Quicker Than The Eye, But The Brain Believes It All! …read more
Source: FULL ARTICLE at Forbes Latest

News, Politics, Government

How The Fed Came To Be

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By Mike Patton, Contributor

The Bank Panic of 1907 is considered to be the primary catalyst in the creation of the Federal Reserve System. As you might imagine, there were some very colorful characters and cunning schemes at the root of it all, but in the end, there was a need to create a central banking authority to assure that severe incidents like this would not occur again. Here’s a summary of the events leading up to the Fed’s creation. …read more
Source: FULL ARTICLE at Forbes Latest

News, Politics, Government

End The Fed, Or Celebrate Its Existence? Reflections On Our Central Bank's 100th Anniversary

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By James Dorn, Contributor This year marks the 100th anniversary of the Federal Reserve System.  There will be many events commemorating the signing of the Federal Reserve Act in December 1913.  Many of those events will be occasions for celebrations by Fed officials and staff, but should the public celebrate a century of central banking?
Source: FULL ARTICLE at Forbes Latest

Articles of Interest

Remembering The Dreamer

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By Dr. Alveda King

Martin Luther King Jr42819 Remembering the Dreamer

But let judgment roll down as waters, and righteousness as a mighty stream. Amos 5:24 ERV

Rev. Martin Luther King, Jr. quoted this powerful scripture in his famous I HAVE A DREAM speech. He believed God’s Word. He took his Bible, the one President Obama will place his hand upon next week, very seriously; so seriously that he repeatedly risked his life to proclaim its message of love for God and love for neighbor.

Uncle M.L., like everyone, was far from perfect; but he loved the Lord. It was God’s Word that he used to unite a movement and change our nation.

Uncle M.L. was born on January 15, 1929. In remembering him today, I can tell you that he was a kind and gentle man who was used as a strong prophet of God.

Many people called him the “Black Moses” and the “Modern Day Apostle of Love.” He was a Baptist preacher of the Gospel of Jesus Christ who was also called to lead the 20th Century Civil Rights Movement.

Dr. Martin Luther King, Jr. loved Jesus and preached His Word. His sermons such as Rediscovering Lost Values and The Death of Evil on the Seashore reflect his devotion to the Lord and his obedience to God’s call. The themes of his teachings are strongly reflective of the need of God’s love, human repentance, and forgiveness.

Dr. King was a family man. As one whose bloodline includes ancestors who were not only powerful Gospel preachers, but ex-slaves, Irish sharecroppers, educators, musicians, entrepreneurs, and civil rights leaders, we can understand and appreciate how God called Dr. King as a modern day Moses and gave him a prophetic DREAM to help set the captives free.

He and my father, Rev. A. D. King, are brothers, fallen soldiers of the 20th Century Civil Rights Movement who now reside in Heaven. Many people don’t even know that Martin had a brother and a sister. He was a beloved uncle and family member.

The year 2013 will mark several significant landmark anniversaries, including 150 years since the signing of the Emancipation Proclamation, 100 years since the formation of the Federal Reserve System, 50 years since the MLK ‘I HAVE A DREAM SPEECH’, and the 40th year landmine Supreme Court Roe v. Wade decision that legalized abortion in America. This will surely be a year of transition, and there is a need for a deep spiritual awakening. In fact, it’s time for America to wake up before the dream becomes a nightmare.

Thank God that Rev. Martin Luther King, Jr. had a dream. Happy Birthday, Uncle M. L.

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Source: FULL ARTICLE at Western Journalism