Unfortunately, bank stock buybacks are only suspended, not forbidden permanently. Buybacks by banks and other companies should be forbidden in most cases. In all but a small number of cases, the purpose of a buyback is to manipulate the market. They should not be allowed.
Bank stocks fell today in response to the Federal Reserve's requirement that they suspend buybacks and cap dividend payments. Banks must preserve their capital in order to improve resilience to a second wave of recession. This is a good first step.https://www.nytimes.com/2020/06/25/business/economy/fed-dividend-buyback-limits.html …
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