Fed caps bank dividends and bans share buybacks
Goldman Sachs and Morgan Stanley fare the worst in stress tests
25 June 2020 - 23:41
New York —The Federal Reserve told the biggest US banks they cannot increase dividends or resume buybacks until at least the third quarter as uncertainty over the course of a global pandemic weighs on lenders.
The industry performed well in annual stress tests, according to a statement Thursday from the central bank, but a separate review of the effects of the coronavirus on the economy and financial system uncovered potential risks that left the fate of their dividends in question...
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