Fed Said to Plan Guidelines for Bank Dividends, Stock Buybacks
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The Federal Reserve is preparing guidelines for supervisors to use in assessing whether banks are strong enough to boost dividends or buy back shares, a person familiar with the matter said.
The Fed plans to release the guidelines as soon as this month, said the person, who declined to be identified because the plan hasn’t been made public. The Fed is seeking to standardize procedures for supervisors to evaluate inquiries from banks, the person said.