The Zacks Analyst Blog Highlights JPMorgan, Citigroup, Wells Fargo, Morgan Stanley

For Immediate ReleaseChicago, IL – September 10, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: JPMorgan JPM, Citigroup C, Wells Fargo WFC, Morgan Stanley MS.Here are highlights from Tuesday’s Analyst Blog:JPMorgan, Citi & Others Face Pressure to Lend More than Reward ShareholdersSix of the largest banks, including JPMorgan, Citigroup, Wells Fargo, Morgan Stanley, Bank of America and Goldman Sachs, have been instructed by U.S. Senators Elizabeth Warren and Bernie Sanders to focus more on boosting lending activities rather than raising dividends and share buybacks.Per a Reuters report, the senators sent joint letters to the CEOs of these banks because they were of the opinion that, in the name of easing regulations, these banks have been making wealthy shareholders richer and raising executive compensation at the cost of financial stability and economic growth.The senators said that while these banks lobby for deregulation in Washington under the banner of boosting lending and economic growth, their actual behavior prioritizes shareholder returns, rather than significantly increasing loans.While JPM, Citigroup, Wells Fargo and Morgan Stanley declined to comment, BofA and Goldman Sachs did not immediately respond to requests for comment.Recent Capital Actions by Major BanksAfter clearing the Federal Reserve's annual stress test this year, which reflected that lenders had enough capital to withstand scenarios such as a severe economic downturn, banks announced plans to raise their third-quarter dividends.JPMorgan approved a $50-billion share repurchase program and hiked its quarterly dividend to $1.50 per share. Goldman Sachs raised its dividend 33.3% to $4 per share and Citigroup hiked its dividend 7.1% to 60 cents.Likewise, Morgan Stanley announced an 8% hike in dividend to $1.00 per share and reauthorized a multi-year share repurchase program of up to $20 billion. Wells Fargo raised its third-quarter stock dividend 12.5% to 45 cents per share.Warren & Sanders Push to Keep Banks StrongThe senators' recent actions come as they seek to preserve and strengthen post-2008 banking safeguards. They have been opposing Wall Street's push to roll back capital requirements and annual stress testing rules, which were put in place after the global financial crisis.The senators argue that loosening capital and liquidity standards would weaken the financial system and increase the risk of another crisis. They urge regulators to maintain rigorous oversight, require greater transparency on bank practices such as overdraft fees, and redirect bank profits toward responsible lending rather than shareholder payouts.They emphasize that higher capital requirements and stress tests are not burdens but essential tools for economic stability because they believe that renewed deregulatory efforts, particularly under a second Trump administration, can leave the economy more vulnerable in the next downturn.Notably, the Fed has recently finalized new capital rules for the largest banks, reinforcing resilience against future crises, an outcome that aligns with the senators' push for stricter safeguards.How Will Increased Lending Affect Banks' Profitability?In the short term, if economic conditions are robust, higher lending generally lifts bank's profits as net interest income (NII) increases. Increased lending leads to a rise in the total interest collected, aiding bank profits, especially when interest rates allow for a healthy margin.However, in the long run, if banks are obliged to lend to riskier clients or during economic downturns, loan losses may eventually erode profits. Loan loss provisions and non-performing assets typically rise with aggressive lending, diminishing returns over time.Free: Instant Access to Zacks' Market-Crushing StrategiesSince 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.Get all the details here >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.com                                      https://www.zacks.com                                                 Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.Investors who bought shares like Nvidia at the right time have had a shot at huge gains.But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.Access AI Boom 2.0 now, absolutely free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Wells Fargo & Company (WFC): Free Stock Analysis Report JPMorgan Chase & Co. (JPM): Free Stock Analysis Report Morgan Stanley (MS): Free Stock Analysis Report Citigroup Inc. (C): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks