Fed tells JPMorgan, Goldman to resubmit capital plans

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Fed tells JPMorgan, Goldman to resubmit capital plans, rejects requests from Ally, BB&T

NEW YORK (AP) -- The Federal Reserve is telling JPMorgan Chase and Goldman Sachs that their plans for maintaining proper capital levels are weak. It ordered both banks to revise their plans by the end of September.

The Fed's order is part of the results of the so-called stress tests. The tests are annual check-ups in which the government determines whether big banks can raise dividends for shareholders and buy back their own shares. The tests are meant to make sure the banks can withstand a severe recession.

The Fed says it will allow JPMorgan and Goldman to go through with any dividend increases or share buybacks they may have requested. The Fed didn't say what the banks had asked for.

The Fed turned down similar requests from Ally Financial and BB&T