Big-league US lenders to stall stock buyback up until June 30th

by   |  VIEW 558

Big-league US lenders to stall stock buyback up until June 30th

Late on Sunday, the 15th of March 2020, an industry group composed of eight big-league Wall St. lenders had issued a statement saying that the leading US lenders would halt share repurchase program until at least June 30th and would lend that capital instead to small- and medium-scale enterprises alongside individuals wounded by the coronavirus’ financial fallouts.

On top of that, the US lenders’ industry Group, called as the Financial Services Forum composed of eight heavyweight Wall St. members such as JPMorgan Chase & Co., Bank of American Corp., Wells Fargo & Co., Citigroup Inc., Morgan Stanley, Goldman Sachs Group Inc., Bank of New York Mellon Corp.

alongside the State Street Corp., was also quoted saying in its Sunday’s (March 15th) statement that each of its members would not purchase its own shares until at least June 30th. More importantly, the latest decision from top eight US lenders comes over the heels of an over-stretched pressing from some of the US lawmakers, who had urged the Wall St.

lenders last week to put a momentary pause to their share repurchase programs and to capitalize on the funds instead to aid the United States’ ailing economy which would likely to contract in the first half of 2020 according to a Goldman Sachs research published later this week.

Meanwhile, referring to the scale of vulnerability the US economy might need to grapple with following the Covid-19 outbreak, the US lenders’ Group said in a statement late on Sunday (March 15th), “The COVID-19 pandemic is an unprecedented challenge for the world and the global economy and the largest U.S. banks have an unquestioned ability and commitment to supporting our customers, clients and the nation. ”