Major US banks 'considering defying Fed on dividend disclosures'

7 March 2013

Major US banks are considering the possibility of defying an instruction from the Federal Reserve (Fed) with regard to their dividend disclosures, it has emerged.

Sources with knowledge of the matter have informed Bloomberg that the group of 18 financiers may announce their plans for this area of their business shortly after the central institution releases the results of its stress tests.

The Fed has requested that lenders including Goldman Sachs and JPMorgan wait until next week to unveil these details, despite the fact banks are set to receive preliminary confirmation today (7 March) about whether their capital plans have received approval.

Insiders revealed that executives are concerned that such a delay could lead to confusion among investors and are therefore looking into the possibility of making their proposals public immediately.

John Coffee, securities law professor at Columbia University Law School, told the news source that banks "don't want to surprise the analyst community, which is sitting there hungry for details".

By Tony Aynsley

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