Fed tells JPMorgan, Goldman to improve capital plans, vetoes two other big banks after stress tests

In a blow to two major Wall Street banks, the Federal Reserve told Goldman Sachs Group Inc and JPMorgan Chase & Co that they must fix flaws in how they determine capital payouts to shareholders, but still approved their plans for share buybacks and dividends. The Fed said JPMorgan and Goldman would have to submit new plans by the end of the third quarter. A senior central bank official declined to identify specific problems. In the second phase of the Fed's annual stress tests of the 18 largest U.S. banks, the regulator said on Thursday that it had approved 14 firms' capital plans without any strings attached. The Fed vetoed submissions by BB&T Corp and Ally Financial. The results show the Fed is keeping a tight leash on the nation's big banks five years after the U.S. financial crisis. The annual testing has become a key tool for regulators to ensure that banks are not eating too much into their capital cushions, by examining how banks would weather a hypothetical major