US Bank Stocks Sink As Fed Caps Dividends, Forbids Share Buybacks In Stress Tests
Bank stocks surged today ahead of what analyst Mike Mayo called “the most high-profile stress test since the financial crisis” thanks to handout on Volcker Rule and swap margin easings and hope for tonight’s Fed release of a data avalanche showing how the top 34 banks would fare in a hypothetical crash (including, for the first time, a pandemic scenario) and whether they will be allowed to execute their dividend plans.
The market is pricing in a modest dividend cut and then flat for the next 12 months… Read more…………..
Chart Of The Day
Mike Mayo, managing director at Wells Fargo Securities, joins “Squawk Box” to discuss the exposure Big Banks have to some of the problem areas in the economy amid the coronavirus pandemic.