US banking giant Morgan Stanley has increased its quarterly dividends to 70 cents. The US bank announced in a recent circular that its shares dividend will be doubled from the last quarter of the year. According to the circular, the bank would also introduce a 1-year stock repurchase plan summing up to $12 billion. After the announcement, shares of the US bank had leaped by 4%.
CEO of the bank, James Gorman, issued comments on the development and said that the move was taken by the board’s bank to shake up its capital foundation in line with its new business models. However, Morgan Stanley is not the only bank who has made this move.
Other major banks in the US had effected changes to their dividends and capital foundations as well. JPMorgan Chase succeeds Morgan in similar changes. JPMorgan Chase increased its shares’ dividends by 11% per $1 and further introduced a stock repurchase plan.
Bank of America announced a similar development. Citigroup, Wells Fargo and Goldman Sachs were not left out in the wave of increased dividends and stock repurchase plans.
Prior to this, US banks had undergone a stress test which helps financial regulators in the country determine if they are well-above the stress capital buffer, especially during times of economic crisis. The 2020 pandemic had necessitated the test.
Morgan Stanley Purchases Over 28,000 BTC Shares of GBTC
With the activities of the US Bank gaining momentum in cryptocurrencies, it has purchased almost 30,000 shares of Grayscale Bitcoin Trust to cater for the ever-burgeoning demands of its customers on crypto.
In March, the US bank had embraced Bitcoin investment products allowing its well-heeled customers to invest on crypto assets. Meanwhile, the US SEC has refused to approve applications for cryptocurrency ETFs, citing manipulations and volatility as reasons for its unchanging stance.