JPMorgan, Goldman to Restart Buybacks as Fed Gives Green Light
- Industry has been source of strength during pandemic, Fed says
- But dividends still restricted amid economic uncertainty
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The Federal Reserve, showing confidence in how banks are weathering the pandemic, gave industry leaders a green light to resume billions of dollars in stock buybacks. Lenders including JPMorgan Chase & Co. and Goldman Sachs Group Inc. said they’ll take the Fed up on its offer.
The loosening of restrictions marks a partial but significant win for firms that have been eagerly awaiting permission to boost capital distributions. Soon after the Fed’s announcement Friday, banks began disclosing plans to resume buybacks as soon as the first quarter.