Banks’ dividends could be at risk.
Banking stocks tumbled Friday after the Federal Reserve highlighted potential vulnerabilities in the sector. The central bank suspended buybacks and capped dividends on financial institutions through the third quarter after its recent stress tests. Banks are expected to announce any changes to their dividends after the bell Monday.
Nancy Tengler, chief investment officer at Laffer Tengler Investments, said Goldman Sachs could be one of the major financial companies best equipped to weather the coronavirus pandemic and economic slowdown.