Fed suspends share buybacks and limits dividends for big banks after stress test results - Business Insider

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Fed suspends share buybacks and limits dividends for big banks after stress test results

The Federal Reserve on Thursday imposed new restrictions on the US banking system after its annual stress test showed that some banks may approach minimum capital levels under certain coronavirus pandemic scenarios.

In addition, the board is also capping dividend payments and requiring large banks to re-submit and update capital plans later in the year to reflect current stresses.The Federal Reserve imposed new restrictions on the US banking system Thursday after its annual stress test showed that some banks would approach minimum capital levels under certain coronavirus pandemic scenarios.

In addition, the regulator is also requiring banks to re-evaluate their longer-term capital plans, it said. It's the first time since the financial crisis that the Federal Reserve has put new restrictions on the US banking system.

 

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