Fed says banks pass stress tests - to lift pandemic restrictions on share buybacks, dividends after June 30

Author: Eamonn Sheridan | Category: Central Banks

Federal Reserve statement on the results of stress tests on banks. 

  •  to lift pandemic restrictions on bank share buybacks and dividends on June 30 after banks clear stress test
  • fed projects 23 large banks would suffer $474 bln in losses in a hypothetical downturn
  • fed says latest test shows large banks have strong capital levels and can continue lending even during a severe recession
  • fed says despite projected losses, banks would still have capital ratios twice as high as regulatory minimums
  • fed expects banks to withhold any announcements on capital plans until after market close Monday

More fuel for share prices. Or sell the fact. You be the judge. 

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