Wells Fargo is a surprising winner: The bank has been embroiled in several scandals that harmed customers. That did not appear to hold it back in the stress tests. Nor did the stringent regulatory action the Fed imposed on the bank earlier this year, which included a cap on its growth. Wells Fargo, having passed the stress tests, on Thursday announced that the Fed had signed off its plan to initiate roughly US$33-billion in stock buybacks and dividends, more than double the amount approved after last year's test. That payout would be 40 percent more than earnings analysts expect Wells Fargo to make in the second half of this year and the first half of next, which is the period covered by the banks' capital plans. One possible reason Wells Fargo can distribute so much capital is that it needs less to finance new loans since the Fed restrained its growth. The big payouts make the balance sheet cap imposed by the Fed less painful for the bank's shareholders.