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Fed stops big banks from buying back stock, caps dividends

Published Thu Jun 25 2020 21:52:55 GMT+0000 (Coordinated Universal Time)
The Federal Reserve says a worst-case scenario for the U.S. economy ravaged by the coronavirus pandemic would cause nation’s 34 largest banks to collectively lose roughly $700 billion. To bolster the banks ahead such a potentially damaging recession, the Fed ordered them to suspend buybacks of their own stock and cap dividend payouts until Sept. 30. The moves came as the central bank unveiled its latest “stress tests,’” which are designed to test the resiliency of the nation’s largest banks. The annual tests change every year, and passing the tests is a requirement for the banks to start buying back shares or paying out dividends.  
by By KEN SWEET
Fed stops big banks from buying back stock, caps dividends
Fed stops big banks from buying back stock, caps dividends