Analysts Say Politics May Outweigh Economics in Fed Stress Tests
- Banks to pass, but won’t be returning more capital: Mike Mayo
- Wells Fargo analyst sees regulator focus on reputational risks
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Results from the Federal Reserve’s special coronavirus stress tests, due after the bell, may highlight the primacy of political tensions over the financial health of the nation’s biggest banks.
Though lenders are expected to pass the tests, the Fed is likely to keep a pandemic-induced halt on buybacks and caps on dividends after it extended the unprecedented constraint in October through year-end, according to analysts.