NEW YORK–The biggest banks in the U.S. have put their share buybacks on hold and pledged to put their capital to use helping consumers and businesses struggling with the rapid economic slowdown caused by the outbreak of coronavirus.
The Financial Services Forum, which represents the biggest U.S. lenders and custody banks, announced the decision to suspend buybacks after the Federal Reserve cut its benchmark interest rate to near zero and took steps to prevent market disruptions and keep money flowing through the financial system, the Wall Street Journal reported.
The group’s members are JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs, Morgan Stanley, Bank of New York Mellon and State Street Corp.
“The largest U.S. banks have an unquestioned ability and commitment to supporting our customers, clients and the nation,” the forum said in a statement.
The Journal noted that earlier Sen. Sherrod Brown (D-OH), who is the top-ranked Democrat on the Senate Banking Committee, had called on banks to suspend their buybacks. “Banks need to be investing in their communities right now, not investing in their CEOs’ stock portfolios,” the Ohio senator said on the Senate floor.