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Banks with a clean bill of health can get the green light to increase dividend payments.
The Fed quashed Citi's latest effort to increase dividend payouts for shareholders.
The acquisition and resulting tax credit stemming from Ipse's losses would lift Enel's profit and help it increase dividend payments, which this year totaled 11percentt of its average share price, the company said.
Several companies already have indicated that they will use excess funds to pay off debt, increase dividend payments or repurchase their own shares rather than create new jobs or raise wages.
Profitable banks have other carrots to dangle, too: they are likely to increase dividend payouts and resume buying back stock once lingering questions are answered about how much regulatory capital and liquid assets they need.
HSBC's boss has hit out against the chancellor's bank levy, warning it would end his efforts to increase dividend payments to shareholders, as he said a review of whether to move Britain's biggest bank out of the UK would be completed by the end of the year.
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BP shareholders constantly put pressure on management to increase dividends.
Analysts at Bernstein said the plan to increase dividends was untenable.
And that means the money could not be used to increase dividends or buy back stock.
The tests are used to determine whether the banks can increase dividends or repurchase shares.
It gave an incentive to corporations to increase dividends and make them relevant again for investors.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com