US Fed to extend big bank buybacks, dividend curbs through end of year

Representative Photo. Credit: AFP

The US Federal Reserve will curb big bank capital distributions through the end of the year, meaning the likes of JPMorgan, Citi, Wells Fargo and Bank of America will be barred from share buybacks and will have to cap dividends into the new year.

The central bank announced that it would be extending its existing policy of limiting capital payouts for banks with at least $100 billion in assets, to ensure lenders have enough capital to the weather the economic strain caused by the coronavirus pandemic.