CHICAGO, June 26, 2014 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Zions Bancorporation (Nasdaq:ZION-Free Report), Citigroup Inc. (NYSE:C-Free Report), HSBC Holdings plc (NYSE:HSBC-Free Report), Banco Santander, S.A. (NYSE:SAN-Free Report) and The Royal Bank of Scotland Group plc (NYSE:RBS-Free Report).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Wednesday's Analyst Blog:
Fed Extends Capital Plan Resubmission Deadline
The banks, whose capital plans were rejected by the Federal Reserve in March, have been granted an extension to re-submit the revised plans till Jan 5, 2015 (same as the deadline to submit their 2015 capital plans). The prior deadline was Jun 26, 2014.
Of the five banks, only Zions Bancorporation (Nasdaq:ZION-Free Report) resubmitted its revised capital plan in April. Others – Citigroup Inc. (NYSE:C-Free Report) along with the U.S. units of HSBC Holdings plc (NYSE:HSBC-Free Report), Banco Santander, S.A. (NYSE:SAN-Free Report) and The Royal Bank of Scotland Group plc (NYSE:RBS-Free Report) – presently got an extension.
The capital plans of these four banks were rejected by the Fed on on the basis of certain "qualitative" reasons. According to the Fed, these banks had loopholes in their risk management practices under stressful scenario. (Read more: Stress Test Results: 25 Banks Triumph, 5 Disqualify)
The annual stress test and the consequent approval of the capital plans are part of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Per the law, the bank holding companies (BHCs) with $50 billion or more in total consolidated assets require the Fed's approval for their capital plans.
For U.S. banks, capital deployment means higher dividends and increased share repurchase authorization. However, for units of foreign banks it entails higher dividend payments to the parent companies.
The extension of resubmission deadline will afford the banks more time to modify the capital planning weaknesses recognized by the Fed. Although the banks will not be able to increase their capital distributions for this year, they will continue with their current capital deployment plans.
Notably, the news does not come as a surprise for shareholders of Citigroup. As declared previously by the CEO, Michael Corbat, the company does not intend to resubmit its 2014 capital plan. However, it will work to fix the loopholes and prepare the 2015 capital plan.
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.
Get the full Report on ZION - FREE
Get the full Report on C - FREE
Get the full Report on HSBC - FREE
Get the full Report on SAN - FREE
Get the full Report on RBS - FREE
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
[email protected]
http://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Logo - http://photos.prnewswire.com/prnh/20101027/ZIRLOGO
SOURCE Zacks Investment Research, Inc.
Share this article