The Fed: Fed caps bank dividend payments and suspends share-buybacks for third quarter after stress tests

The Federal Reserve on Thursday voted to cap bank dividend payments to an income formulation and forbid share-buybacks as a study showed firms would take a big hit under some downside scenarios related to the coronavirus pandemic.

The Federal Reserve on Thursday voted to cap bank dividend payments to an income formulation and forbid share-buybacks as a study showed firms would take a big hit under some downside scenarios related to the coronavirus pandemic.