Bank stocks are falling today as Fed caps dividends and share buybacks
June 26, 2020
Bank stocks today
At 11:29 AM, ET time today shares of big banks are falling. These are the latest stock prices for major big US banks:
The Goldman Sachs Group, Inc. (GS): 193.03-14.07 (-6.79%)
JPMorgan Chase & Co. (JPM): 93.04-4.92 (-5.02%)
Wells Fargo & Company (WFC): 25.58-1.79 (-6.54%)
Why bank stocks are falling today
“Stocks fell Friday morning, pointing to a lower end to the week. The Dow underperformed against the S&P 500 and Nasdaq, as Nike shares slid after reporting a surprise quarterly loss.
Shares of big banks including Goldman Sachs, JPMorgan Chase and Wells Fargo traded lower, after the Federal Reserve said in its stress test results Thursday after market close that it would restrict dividends and share buybacks on financial companies for the third quarter. The move is intended to “ensure large banks remain resilient despite the economic uncertainty from the coronavirus event,” according to the Fed.
Earlier during the regular session Thursday, the financials sector had led the S&P 500’s advances, after regulators eased constraints over certain bank investments, which had first been implemented after the global financial crisis”
Stock market data: Yahoo Finance