Bank Earnings: Main Street Blues vs. Wall Street Boom

Bank earnings can sometimes be a snooze. But the stakes this quarter are unusually high. Investors need to pay more attention than usual because their dividends are potentially at stake. New Federal Reserve rules will limit third-quarter payouts to the average level of profits a bank made over the prior four quarters. The first quarter of 2020 saw the beginning of impacts from the coronavirus crisis—and the second quarter will see more. Wells Fargo, which reports on Tuesday, has already said it expects to cut its payout. For…


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