The Federal Reserve capped dividends and banned share buybacks by big US banks as it released an analysis showing Covid-19 could trigger $700bn of loan losses and push some lenders close to their capital minimums. Announcing the results of a trio of exercises on the health of America’s top lenders, the Fed on Thursday said 33 banks that underwent “stress tests” would be banned from buying back their shares until at least the fourth quarter. The eight biggest had already voluntarily suspended the buybacks, which account for about 70 per cent of the US banks’ shareholder distributions, until July. Jamie Dimon, JPMorgan Chase chief executive, recently said they were not likely to resume until the fate of the economy was clearer. The US central bank stopped short of banning dividends — as European regulators have done during the crisis. Instead, the Fed said third-quarter quarter dividends from the 33 banks could be no higher than last year’s and no higher than the average of a bank’s earnings for the four quarters ended June 30. It deferred decisions on future dividends until the fallout from the pandemic became clearer, spelling further uncertainty for bank investors. Randal Quarles, Fed vice-chair, said for the first time in a decade supervisors are asking all banks to “reassess their capital needs and resubmit their capital plans to the Federal Reserve later this year”. No date was specified. The Fed’s decision on those plans will depend on “additional stress analyses later in the year”. Mr Quarles added: “If the circumstances warrant, we will not hesitate to take additional policy actions to support the US economy and banking system.” Nick Note: The following are dead broke and if this continues they will require massive bail outs and odds are it won’t work this time!. The dead broke asshole are, Wells FARGOES your Money, JP Morgan the pirate Chase them to get your money back. Goldman Sack up your money and blow town, Bank OF America Insecurity And My old Favorite Deuche bag Bank! broke Broke Broke i tell you. They got a bail out and the coronavirus has struck again. THESE BANKS CANNOT SURVIVE! And for the record they will not survive. And get this the money does not exist to bail them out for the third time. And the Fed has already put whats is left of their capital on lock down!