National Post (Latest Edition)
Bank restrictions extended
WASHINGTON• The U.S. Federal Reserve will curb big bank capital distributions through the end of the year, meaning the likes of JPMORgan Chase & Co, Citigroup Inc., Wells Fargo & Co and Bank of America Corp. will be barred from share buy backs and will have to cap dividends.
The central bank said it would extend its existing policy of limiting capital payouts for banks with at least US$ 100 billion in assets, to ensure lenders have enough capital to weather the economic strain caused by the coronavirus pandemic.
The restrictions, which apply to 34 banks, were extended “due to the continued economic uncertainty from the coronavirus response,” the Fed said.