Financial Times: A Ban on Us Banks Issuing Dividends Would Be Bad Policy

Financial Times: A Ban on Us Banks Issuing Dividends Would Be Bad Policy

Economic turmoil related to the Covid-19 pandemic has spurred calls for the Federal Reserve to prevent US banks from issuing dividends, following similar moves by regulators in Europe and the UK. Such action would produce little to no benefits and substantial costs. In fact, a ban could strain banks’ ability to support lending and economic growth, both now and over the long term…

Originally published in the Financial Times on May 25, 2020. To access the full article, please click here.