After the Fed’s stress tests on banks, buybacks are halted through at least the end of September, and common-stock dividends are capped at an average of the past four quarters’ earnings

Wells Fargo  announced it will cut its dividend, breaking rank with all of Wall Street’s other big banks, following the Federal Reserve’s move to set new restrictions on dividend payouts to shareholders.

The fourth-biggest U.S. bank by assets announced it plans to cut its dividend from the 51 cents it paid in each of the four most-recent quarters. The bank said it would announce its payout when it reports second-quarter earnings on July 14.

The move marks the first time since the financial crisis that a major U.S. bank has slashed its quarterly reward to shareholders, though it also comes as the Fed literally backstops banks and other lenders with almost free money to keep cash flowing through the economy amid the coronavirus pandemic and ensuing economic collapse.

Read more:  https://www.thestreet.com/investing/wells-fargo-wfc-dividend-cut-wall-street-banks