Weekly Global News Wrap: Major US banks suspend stock buybacks; European banks close branches amidst pandemic

And a Mexico central bank staffer tests positive for COVID-19.

From CNBC:

The Financial Services Group, composed of some of America’s biggest banks, have announced that it would stop stock buybacks through Q2 2020 due to the coronavirus pandemic.

Bank stocks have plummeted so far this year as the virus has spread around the world. Shares of JPMorgan and Morgan Stanley are both down more than 25% since the start of 2020, while shares of Citi have fallen more than 36%.

Buybacks are one way for companies to return capital to their shareholders and can help boost the price of stocks. In Q4 2019, JPMorgan alone did more than $6b in net repurchases, which accounts for extra shares issued to employees.

From Reuters:

Two of Germany’s largest lenders have temporarily shut hundreds of branches whilst Italian banks have shortened operating hours as Europe fights the coronavirus pandemic.

Banks that have closed branches include Commerzbank, HVB, whilst Intesa San Paolo and UniCredit have slashed operating hours.

Banks are hoping that increased use of digital banking will limit the disruption caused by restricted branch services. In Britain, Spain and France, where most banks remain open, there have been calls on customers to go online.

From Reuters:

A high-ranking member of Mexico’s central bank has tested positive for the coronavirus after attending a conference that was also attended by high-ranking government officials and bankers.

The Bank of Mexico did not disclose the name of the staffer and said none of its five board members had presented symptoms of the disease.

A central bank source told Reuters the staff member attended the two-day convention in the port of Acapulco. Other attendees were President Andres Manuel Lopez Obrador, Finance Minister Arturo Herrera and Central Bank Governor Alejandro Diaz de Leon.

Photo courtesy of Wikimedia Commons.