- The Federal Reserve extended its limits on stock buybacks and dividends for the nation’s largest banks through the rest of 2020.
- Firms with more than $100 billion in total assets will be kept from initiating new repurchase programs and must keep dividends below their second-quarter levels, the central bank announced on Wednesday.
- The extension was made “due to continued economic uncertainty” and is meant to buttress banks’ cash reserves during the virus-induced slump.
- The constraints were first announced in June.
- Visit the Business Insider homepage for more stories.
The Federal Reserve lengthened its caps on share buybacks and dividend payments for the US’s largest banks through the rest of the year.
Firms with more than $100 billion in total assets will be kept from starting new repurchase programs, and dividend payments will be