Financials:Stress Test Results Could Lead to Dividend Cuts -- Should Bank Investors Worry?
- Author
- The Motley Fool
- Published
- Mon 29 Jun 2020
- Episode Link
- https://wherethemoneyis.libsyn.com/financialsstress-test-results-could-lead-to-dividend-cuts-should-bank-investors-worry
The Federal Reserve recently released the results of 2020 bank stress tests, and while no banks are in serious danger, some would see capital levels fall a bit too low for comfort in a prolonged and deep COVID-19 recession. As a result, the Fed issued a formula to govern bank dividends, and there's a real chance bank investors could see dividend cuts from some major financial institutions. In this episode of Industry Focus: Financials, host Jason Moser and Fool.com contributor Matt Frankel, CFP discuss the news and what it could mean for bank investors. Plus, Moser and Frankel answer a listener's excellent question on position size and share why they're watching Wells Fargo (NYSE: WFC) and American Express (NYSE: AXP) this week.
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