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U.S. Bank Plans To Repurchase Up To $3 Billion Of Shares

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EDITOR NOTE: The danger of a stock buyback program is that it contributes nothing to the production of the firm. It pays shareholders yes, but it also has a negative effect, draining corporate treasuries and disrupting the growth dynamic that links the labor force productivity and pay. Income inequity, instability in employment, and waning productivity are the typical results. Like many of its fellow banks, US Bank is about to join the buyback bandwagon as the Fed has given bank share repurchases the green light. Perhaps a boon for investors, it ultimately puts depositors, as well as the bank itself at risk should the economy come to a breaking point, making the entire system vulnerable to a collapse.

The Federal Reserve announced it would allow firms to restart multibillion-dollar stock repurchase programs in 2021 — and many big banks wasted little time. © 2020 American City Business Journals. All rights reserved. Use of and/or registration on any portion of this site constitutes acceptance of our User Agreement (updated 1/1/21) and Privacy Policy and Cookie Statement (updated 1/1/21). The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of American City Business Journals.

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