JPMorgan Chase and Goldman Sachs were told by the Federal Reserve to submit new capital plans by the end of September. The Fed will then decide if they are in compliance with the rules on capital reserves.
Banks' losses from buying back bad mortgages won't be as bad as previously expected, according to analysts at JPMorgan Chase, who estimate those repurchases will cost about 25% less than previously forecast.
When IBM raised its stock buyback authorization by $10 billion on Oct. 26, it became the 259th company to announce repurchase plans in October alone. Citi Investment Research says the long-term trend of rising share repurchases has only just begun.
Microsoft may sell debt later this year to fund share buybacks and dividend payments for shareholders of the world's largest software maker. The company may opt to issue debt because interest rates are near record lows.