Tags: Regulators | Banks | Dividends | Buybacks

Report: Regulators Order Banks to Restrict Dividends, Buybacks

Wednesday, 10 Mar 2010 10:17 AM


Shareholders may have to wait for months to retrieve capital after U.S. regulators told banks not to increase dividends or buy back shares amid political and economic uncertainty surrounding the financial industry, the Financial Times reported on Wednesday.

Executives at JPMorgan Chase & Co. and Goldman Sachs Group have talked in public and to regulators about the possibility of returning cash to investors after measures to retain capital in the wake of the global credit crisis, the FT reported.

However, those plans may be delayed if regulators oppose those moves, the newspaper said.

"Regulators are gun-shy at this stage, partly because they fear that giving the green light to healthier banks to return cash to investors would prompt demands from more troubled institutions to do the same," one senior Wall Street executive told the Financial Times.

Sources familiar with the situation said government agencies, including the New York Federal Reserve and the U.S. Treasury, told banks they would have to wait until the economic and legislative landscape became clearer before banks could follow through with plans to return funds to investors, the newspaper said.

A JPMorgan representative didn't immediately return a message seeking comment, and Goldman Sachs declined comment.

© 2015 Thomson/Reuters. All rights reserved.

Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Mali's Islamists Withdraw Cease-Fire Pledge

Friday, 04 Jan 2013 13:06 PM

Tens of thousands of Fatah supporters rallied in the Hamas stronghold of Gaza on Friday for the first time since they we . . .

Fmr. CIA Director Hayden: Iran Nuclear Crisis Gets 'Scarier'

Tuesday, 17 Jul 2012 18:11 PM

 . . .

Join Fmr. CIA Director for Special Iran Briefing, Assess the Danger

Friday, 13 Jul 2012 12:27 PM

 . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved