BAC - Federal Reserve said Banks could resume stock buybacks
Looking for a $32.30 to $31.00 pull back at most before entering.
The Fed in June had put temporary caps on shareholder payouts, prohibiting them from buying back stock or increasing dividend payments.
"The banking system has been a source of strength during the past year, and today's stress test results confirm that large banks could continue to lend to households and businesses even during a sharply adverse future turn in the economy," the Fed's vice chairman for supervision, Randal K. Quarles, said in a statement.
JPMorgan and Morgan Stanley released statements, saying they planned to resume buybacks starting next quarter. Citi and Goldman said they intended to resume such purchases next year.
Bank of America CEO Brian Moynihan has said that his company plans to buy back stock as soon as it is allowed to.
The six biggest U.S. banks could buy back as much as $11 billion of shares in the first quarter under the new distribution policy, according to Bloomberg.
Source "https://www.thestreet.com/investing/banking-stocks-jump-after-fed-allows-buybacks-to-resume#:~:text=The%20Federal%20Reserve%20said%20that,buybacks%20in%20the%20first%20quarter.&text=Banking%20stocks%20jumped%20Monday%20after,beginning%20in%20the%20first%20quarter."
The Fed in June had put temporary caps on shareholder payouts, prohibiting them from buying back stock or increasing dividend payments.
"The banking system has been a source of strength during the past year, and today's stress test results confirm that large banks could continue to lend to households and businesses even during a sharply adverse future turn in the economy," the Fed's vice chairman for supervision, Randal K. Quarles, said in a statement.
JPMorgan and Morgan Stanley released statements, saying they planned to resume buybacks starting next quarter. Citi and Goldman said they intended to resume such purchases next year.
Bank of America CEO Brian Moynihan has said that his company plans to buy back stock as soon as it is allowed to.
The six biggest U.S. banks could buy back as much as $11 billion of shares in the first quarter under the new distribution policy, according to Bloomberg.
Source "https://www.thestreet.com/investing/banking-stocks-jump-after-fed-allows-buybacks-to-resume#:~:text=The%20Federal%20Reserve%20said%20that,buybacks%20in%20the%20first%20quarter.&text=Banking%20stocks%20jumped%20Monday%20after,beginning%20in%20the%20first%20quarter."
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