Bank stocks back down in off-hours trading after the Federal Reserve limits dividends and buybacks in the third quarter

Shares of the largest US banks were withdrawn on Thursday after the Federal Reserve after its annual banking system stress test voted to require financial institutions to preserve capital by suspending share buybacks and the dividend payment in the third quarter amid the worst economic and public health crisis in decades. Shares of JPMorgan Chase & Co. JPM,
+ 3.48%
were trading 1.5% less in light trading in post-trade action, those of American Express Co. AXP,
+ 2.48%
were out 1.1%, Bank of America shares traded 2.6% lower in the later hours, Goldman Sachs GS shares,
+ 4.58%
fell 2%, while Morgan Stanley MS,
+ 3.91%
Shares fell 2.1% and those of Citigroup C,
+ 3.68%
they were out of 1.9%. Wells Fargo WFC shares,
+ 4.78%
3% fell in post-marketing action. To be sure, all of those megabanks enjoyed a powerful updraft in the regular session, with Wells ending the day 4.8% after the Federal Deposit Insurance Commission and the Office of the Comptroller of the Currency said they plan to loosen the restrictions. imposed by the Volcker standard makes it easier for banks to make large investments in venture capital and similar funds. They may also avoid reserving cash for derivative operations between different affiliates of the same company, which could free billions of dollars in capital for the industry, according to the Wall Street Journal.