Fed Cancels Bank Dividends
- Thread starter niceneasy
- Start date
taking a page out of the UK playbook
Fed so much meddling it's too much
Will buy FAZ finance bear if it runs
Oi! Can't people read?
The Fed did NOT cancel dividends. They capped them.
For the third quarter of this year, the Board is requiring large banks to preserve capital by suspending share repurchases, capping dividend payments, and allowing dividends according to a formula based on recent income. The Board is also requiring banks to re-evaluate their longer-term capital plans.
All large banks will be required to resubmit and update their capital plans later this year to reflect current stresses, which will help firms re-assess their capital needs and maintain strong capital planning practices during this period of uncertainty. The Board will conduct additional analysis each quarter to determine if adjustments to this response are appropriate.
During the third quarter, no share repurchases will be permitted. In recent years, share repurchases have represented approximately 70 percent of shareholder payouts from large banks. The Board is also capping dividend payments to the amount paid in the second quarter and is further limiting them to an amount based on recent earnings. As a result, a bank cannot increase its dividend and can pay dividends if it has earned sufficient income.
https://thehill.com/policy/finance/...-dividend-payments-for-big-banks-after-stress
they're banning buybacks which i support. but they're not banning dividends; it's a cap, which i kind of don't support.
But title of this thread is inaccurate
they're banning buybacks which i support. but they're not banning dividends; it's a cap, which i kind of don't support.
But title of this thread is inaccurate
Ken Calhoun | Founder
www.TradeMastery.com
Hobbies: tenor sax, trollfighter lol
You have something in common with Bill Clinton.
We haven’t had true free markets in decades.
But what the Fed did in March took it to a whole new level of idiocy. Junk bonds...seriously???!!
Price discovery is dead.
Fear of market losses is dead. Moral hazard rampant.
But what the Fed did in March took it to a whole new level of idiocy. Junk bonds...seriously???!!
Price discovery is dead.
Fear of market losses is dead. Moral hazard rampant.