Shares of the U.S.'s biggest banks retreated in after-hours action on Thursday after the Federal Reserve after its annual stress test (American Express Co. (AXP) were off 1.1%, Bank of America shares were trading 2.6% lower in the after-hours, shares for Goldman Sachs (GS) were down 2%, while Morgan Stanley (MS) shares were down 2.1% and those for Citigroup (C) were off 1.9%. Wells Fargo's shares (WFC) tumbled 3% in post-market action. To be sure, all of those mega banks enjoyed a powerful updraft in the regular session, with Wells finishing the day up 4.8% after the Federal Deposit Insurance Commission and Office of the Comptroller of the Currency said they are planning to loosen the restrictions imposed by the Volcker rule and allow banks to more easily make large investments into venture capital and similar funds. They will also be able avoid setting aside cash for derivatives trades between different affiliates of the same firm, potentially freeing up billions of dollars in capital for the industry, according to the Wall Street Journal.) of the banking system voted to require financial institutions to preserve capital by suspending share repurchases and cap dividend payments in the third quarter amid the worst economic and public health crisis in decades. Shares of JPMorgan Chase & Co. (JPM) were trading 1.5% lower in thin trading in post-market action, those for
-Mark DeCambre; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
June 25, 2020 16:45 ET (20:45 GMT)
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