Giant U.S. Banks Vow to Stop Buybacks to Aid Clients, Nation
- Suspension intended to preserve capital to support lending
- Move will also provide more liquidity as companies seek cash
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Eight giant U.S. banks including JPMorgan Chase & Co. and Bank of America Corp. agreed to stop buying back their own shares through the second quarter, saying they will focus on supporting clients and the nation during the coronavirus pandemic.
“The decision on buybacks is consistent with our collective objective to use our significant capital and liquidity to provide maximum support to individuals, small businesses and the broader economy through lending and other important services,” the Financial Services Forum, an industry group, said in a statement Sunday. “Each member institution retains the ability to reinstate its buyback program as soon as circumstances warrant.”