https://www.channelnewsasia.com/news/business/us-bank-shares-drop-as-fed-sets-limits-following-stress-tests-12875084
The US bank shares fell just as expected after FED capped their dividend payouts and share buybacks. We were not saying this outcome on hindsight because we wrote about it in April 2020.
Why did the US Fed stop the banks from doing such things? It is to force the banks to conserve cash and avoid credit rating downgrades.
We had stated that such activities would cause the share prices to drop in our previous post below.
https://sg-stock.blogspot.com/2020/04/what-will-companies-do-with-credit.html
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