Financial Services Forum, which represents eight of the nation's largest banks, says its member institutions, including J.P. Morgan Chase (JPM), Bank of America (BAC) and Citigroup (C) have suspended stock repurchases. The decision to temporarily halt share buybacks comes as the spread of COVID-19, the infectious disease that has spread to more than 100 countries and infected nearly 160,000 people, has dealt a punishing blow to major industries across the globe and threatens to throw the U.S. and global economies into recession, as businesses and consumers curtail activity in order to limit the transmission of the deadly virus. The forum said its members will use their funds to help businesses through the tough times ahead. "The decision on buybacks is consistent with our collective objective to use our significant capital and liquidity to provide maximum support to individuals, small businesses, and the broader economy through lending and other important services," the FSF said in a news release ( /). "The decision is consistent with actions by the Federal Reserve, the administration, and the Congress," the statement read. The move also came as the Fed slashed federal-funds rates to 0% and rolled out an unprecedented $700 billion quantitative-easing measures, as a part of a historic effort to combat the economic harm from the outbreak. Banks, in particular, have taken it on the chin during the stock market's reaction to the pandemic. The FSF members also include Goldman Sachs (GS), Bank of New York Mellon (BK),and Well Fargo & Co. (WFC).
-Mark DeCambre; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
March 15, 2020 18:38 ET (22:38 GMT)
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