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Bank Stress Tests -- Passes and Fails

Fifth Third (FITB) -- Pass: Fifth Third has 2012 stressed capital ratio of 6.3%. The bank did not release a statement on its plans following the Fed announcement.

Goldman Sachs (GS) -- Pass: The Vampire Squid came through the test with flying colors, posting a stress capital ratio 5.7%. Goldman simply said in a statement that the Fed did not object to "proposed capital actions through the first quarter of 2013, including the repurchase of outstanding common stock and a potential increase in its quarterly common stock dividend."

JPMorgan Chase (JPM - Get Report) -- Pass: Jumping the gun on everyone, Jamie Dimon busted out of the stress test gate with a stress test capital ratio of 5.4%. The bank said it will raise quarterly dividend to 30 cents per share from 25 cents per share earlier. It also authorized a new share repurchase program of $15 billion.

Keycorp (KEY) -- Pass: Key came to the table with a stressed capital ratio of 5.3% and said that it will move ahead with $344 million stock buyback program and "will evaluate an increase in the company's quarterly common stock dividend at its regular meeting in May." "We are pleased that we received a no objection with respect to our capital plan from the Federal Reserve today. It allows us to increase our dividends and to start the process of returning capital to our shareholders," said CEO Beth Mooney.

MetLife (MET) - Fail: The insurer's bank came up short on the stress tests posting a 5.1% capital ratio and having its dividend and repurchase request rejected, which included $2 billion in stock repurchases and an increase to its annual dividend from 74 cents per share to $1.10 per share. "We are deeply disappointed with the Federal Reserve's announcement. We do not believe that the bank-centric methodologies used under the CCAR are appropriate for insurance companies, which operate under a different business model than banks," said CEO Steven Kandarian in a statement.

Morgan Stanley (MS) -- Pass: Morgan Stanley has a 5.4% stressed capital ratio and said that it will move ahead with a possible bigger stake in Morgan Stanley Smith Barney and "ongoing payment of current common and preferred dividends," according to a statement.
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