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Fed Extends Dividend, Buyback Cap on Wall Street Banks

  • Central bank says economic uncertainty from Covid-19 remains
  • Lenders capped at second-quarter dividend levels for investors
A person enters JPMorgan Chase & Co. headquarters in New York.
A person enters JPMorgan Chase & Co. headquarters in New York.Photographer: Michael Nagle/Bloomberg
Corrected

The Federal Reserve has extended through the rest of the year its unprecedented constraints on dividend payments and share buybacks for the biggest U.S. banks.

The limits are being continued because of ongoing “economic uncertainty from the coronavirus response” and the need for the banking industry to preserve capital, the Fed said in a statement Wednesday. The news is likely to disappoint lenders such as JPMorgan Chase & Co., which had already indicated interest in resuming buybacks.