None of the largest banks fell beneath their capital minimums under the Fed’s hypothetical stress scenarios, which assessed how banks are navigating the coronavirus pandemic, the central bank said.
Due to the strong performance from banks in the second stress test of 2020, the Fed said it will permit banks to buy back a certain amount of shares based on their income from the prior year, as long as a bank can show it has been profitable and the total amounts are no greater than the average of the banks’ earnings over the past four quarters.
