from Zero Hedge
Last week it was the oil and energy companies. This week it will be the banks.
Moments ago the largest US bank by assets and market cap, JPMorgan, announced that it is suspending its stock repurchase, in a move that will i) spark concerns about JPM’s liquidity state and ii) trigger a kneejerk reaction as all other banks follow suit, and the bank sector plunges tomorrow as the biggest buyer of bank stocks is no longer there.
The question, of course, is whether the buyback suspension will end with US banks, or if all US companies will follow suit in a panicked scramble to preserve liquidity, something which already started in recent months, as we reported previously in “Stock Buybacks Crash Just As Markets Need Them Most.”