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Federal Reserve gives banks permission to spend billions on stock buybacks

Federal Reserve gives banks permission to spend billions on stock buybacks

On Friday the Federal Reserve rode to the aid of bank stocks. The sector had been looking a little pale around the PE in the last few days with the Financial Select Sector SPDR ETF (XLF)  up only 0.11% for the last week. That comes after a strong performance in the last month–a 4.24% gain.  For the year to date the financial ETF is down 5.48% The Federal Reserve, however, cleared the way for banks to boost capital distributions–dividends eventually and more immediately share buybacks