from Zero Hedge
Two weeks after announcing it may extend the limit on dividends and buybacks for large banks – which was scheduled to expire today – by another quarter, after the close on Wednesday the Fed did just that saying that “due to the continued economic uncertainty from the coronavirus response”, it will extend for an additional quarter several measures “to ensure that large banks maintain a high level of capital resilience.” The news will disappoint bank execs such as Jamie Dimon whose JPMorgan had already indicated interest in resuming buybacks.
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. Additionally, dividend payments will be capped and tied to a formula based on recent income, the Fed announced.