Fed extends share buyback ban on US banks into Q4

Washington (AFP) – The Federal Reserve on Wednesday extended a ban on share buybacks by US banks into the fourth quarter, aiming to ensure they have sufficient capital to weather the coronavirus downturn.”For the fourth quarter of this year, large banks — those with more than $100 billion in total assets — will be prohibited from making share repurchases,” the central bank said in a statement. “Additionally, dividend payments will be capped and tied to a formula based on recent income. The capital positions of large banks have remained strong during the third quarter while such restrictions …

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