Posted on Jan. 11, 2021, 1:20 p.m.Updated Jan 11, 2021, 4:18 PM
It is the return of the New Year’s gifts for the shareholders of the big American banks. The six major institutions across the Atlantic (JPMorgan Chase, Morgan Stanley, Goldman Sachs, Bank of America, Citigroup and Wells Fargo) are expected to spend just over $ 10 billion in share buybacks in the first quarter of 2021, according to estimates by analysts compiled by the “Financial Times”.
With such an amount, they would approach the maximum allowed by the Federal Reserve. At the end of December, the American central bank had indeed allowed banks to resume share buybacks, seven months after the freeze imposed by the Covid-19 pandemic and its consequences on the economy. Dividends, on the other hand, remain prohibited until March 2021. In total, the sums distributed to shareholders must not, however, exceed average profits over the last four quarters.