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Fed Clamps Down on Bank Capital Distributions

The U.S. Federal Reserve has put new restrictions, together with a dividend cap, on substantial banking companies immediately after its once-a-year worry checks confirmed the COVID-19 crisis could press them uncomfortably near to minimum amount cash amounts.

The Fed mentioned Thursday it was performing to “ensure substantial banking companies remain resilient inspite of the financial uncertainty from the coronavirus party,” citing “sensitivity analyses” that it carried out in addition to the normal worry checks.

Underneath the new rules, the central bank is requiring banking companies to suspend share buybacks. It is also capping dividend payments to the quantity paid in

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