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"The Board took several actions following its stress tests to ensure large banks remain resilient despite the economic uncertainty from the coronavirus event" the statement read which includes the following actions to be imposed during the third quarter:
Suspending share repurchases Dividend payments capped and allowing dividends according to a formula based on recent income Long-term capital plans to be re-evaluated
"The banking system has been a source of strength during this crisis," Vice Chair Randal K. Quarles said in the statement "and the results of our sensitivity analyses show that our banks can remain strong in the face of even the harshest shocks."
The 3Q pause is the latest in a series of aggressive actions by U.S. policymakers to combat the economic fallout from the coronavirus. In March the Fed began an unprecedented rate-cutting cycle which has taken interest rates to zero.
Fed Vice Chair Richard Clarida, last Friday, told FOX Business, the Fed can and probably will do more to help further the economic recovery which remains fragile.
TickerSecurityLastChangeChange %JPMJP MORGAN CHASE & CO.97.96+3.30+3.49%BACBANK OF AMERICA CORP.24.72+0.91+3.82%CCITIGROUP INC.52.68+1.87+3.68%WFCWELLS FARGO & COMPANY27.37+1.25+4.79%GSGOLDMAN SACHS GROUP INC.207.10+9.08+4.59%MSMORGAN STANLEY48.79+1.84+3.92%
Big banks and financials rose on Thursday, helping lift the broader market after the Fed eased some restrictions from the Volcker Rule which investors felt may have hampered earning power.