Investing.com investing.com 18 Dec, 2020 23:30 am

Fed sees 'strong capital levels' at banks after stress tests, greenlights share buybacks By Reuters

Fed sees 'strong capital levels' at banks after stress tests, greenlights share buybacks By Reuters
Fed sees 'strong capital levels' at banks after stress tests, greenlights share buybacks

banks have enough capital to withstand over $600 billion in losses from a short, sharp economic slump, as well as a moderate longer-lasting downturn, and will be permitted to pay out dividends and buy back stock on a limited basis, the U.The relaxed restrictions were met quickly with announcements from some large firms, including JPMorgan Chase (NYSE: JPM ) and Goldman Sachs (NYSE: GS ), that they planned to buy back stock beginning in the new year.The Fed found all firms remained above minimum capital requirements after taking those hypothetical losses, leading the central bank to relax its restrictions on capital payouts by banks, allowing them to buy back stock in the first quarter of 2021, after barring them in June.Under the new restrictions, a bank would be allowed to pay out dividends and buy back stock so long as such sums did not exceed its net income from the last year.

The Federal Reserve Board building on Constitution Avenue is pictured in Washington By Pete Schroeder and David Henry WASHINGTON (Reuters) -The largest U.Federal Reserve said.

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