Yellen supports banks’ share buybacks. Sen. Warren wants BlackRock designated too big to fail – News 24-7 Live News 24-7 Live
Yellen supports banks’ share buybacks. Sen. Warren wants BlackRock designated too big to fail

Yellen supports banks’ share buybacks. Sen. Warren wants BlackRock designated too big to fail

  • Treasury Secretary Janet Yellen gave her blessing to the Federal Reserve’s decisions late last year to allow banks to buy back their own shares again.
  • The industry’s biggest names “look healthier now” after being held back from returning cash to shareholders during the Covid-19 pandemic, she said.
  • Yellen faced harsh questioning on a related issue when Sen. Elizabeth Warren said she wants money management giant BlackRock to be regulated the same as Wall Street’s too-big-to-fail institutions.

Banks have improved their capital positions and should be allowed to continue to buy back their own shares, Treasury Secretary Janet Yellen said Wednesday.

Regulators restricted share repurchases in 2020 for the biggest institutions in the country as a precautionary measure after Covid-19 reached pandemic status. After those banks passed a pandemic-focused stress test in December, the Federal Reserve said it would allow buybacks to resume, though with some restrictions.

Yellen, speaking Wednesday before the Senate Committee on Banking, Housing and Urban Affairs, said she agreed with allowing the share buybacks.

News Source:- CNBC

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