As it releases bank stress test results, Fed....>

FED: As it releases bank stress test results, Fed said it will require large

banks to stop buying back their own stock and cap dividend payments in the third

quarter as it called on them to "preserve capital" for as much as $700 billion

in losses as the pandemic and recession take a toll. The move fell short of

calls by current and former bank regulators including Fed Governor Lael

Brainard, who strongly dissented against Thursday's capital distribution policy

in favor of going a step further and halting dividends to shareholders

altogether. The Fed said it would revisit the policy on a quarterly basis. See

MNI Main Wire story for more.