Fed’s Kashkari Suggests That U.S. Banks Should Raise Capital

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“Raising that amount from private investors today, as a strong, preventive measure, would ensure that large banks can support the economy over a broad range of virus scenarios,” he wrote in April, adding that banks should also stop paying dividends. “If the crisis turns out less serious than we fear, banks can return the capital through buybacks and dividends once the crisis passes.”

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