Finance

Fed says banks will have to wait until June 30 to start issuing buybacks and bigger dividends

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Banks will be able to accelerate dividends and buybacks to shareholders this year, but not until June 30 and provided they pass the current round of stress tests, the Federal Reserve announced Thursday.

The biggest Wall Street institutions have been limited based on income in their ability to do both for nearly the past year as a precautionary measure during the Covid-19 pandemic.

The Fed had said late last year that it would begin allowing regular disbursements in the first quarter of 2021, so the Thursday announcement pushes that date back.

“The banking system continues to be a source of strength and returning to our normal framework after this year’s stress test will preserve that…



Source cnbc.com

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