Financials:Stress Test Results Could Lead to Dividend Cuts -- Should Bank Investors Worry?

<p>The Federal Reserve recently released the results of 2020 bank stress tests, and while no banks are in serious danger, some would see capital levels fall a bit too low for comfort in a prolonged and deep COVID-19 recession. As a result, the Fed issued a formula to govern bank dividends, and there's a real chance bank investors could see dividend cuts from some major financial institutions. In this episode of <em>Industry Focus: Financials</em>, host Jason Moser and Fool.com contributor Matt Frankel, CFP discuss the news and what it could mean for bank investors. Plus, Moser and Frankel answer a listener's excellent question on position size and share why they're watching <strong>Wells Fargo</strong> (NYSE: WFC) and <strong>American Express</strong> (NYSE: AXP) this week.</p> <p>Check out more of our content here:</p> <div id="1571371200000divider" class="c-virtual_list__item" tabindex="-1" role="listitem"> <ul> <li><a href= "https://www.fool.com/podcasts/?utm_source=podcasts&utm_medium=podcasts&utm_campaign=industryfocus" target="_blank" rel="noopener">TMF's podcast portal</a></li> <li><a href="https://www.youtube.com/user/TheMotleyFool" target= "_blank" rel="noopener">YouTube</a></li> <li><a href="https://twitter.com/mfindustryfocus?lang=en" target= "_blank" rel="noopener">Twitter</a></li> <li><a href="https://m.facebook.com/groups/217114601988296">Join Our Motley Fool Podcast Facebook Group</a></li> <li><a href= "https://www.linkedin.com/company/the-motley-fool">LinkedIn</a></li> <li><a href= "https://www.fool.com/ecap/the_motley_fool/stock-up/?aid=9205&source=isusitsz0000002&ftm_cam=stockup&ftm_veh=sidebarhelp&ftm_mes=signup"> StockUp, The Motley Fool's weekly email newsletter</a></li> </ul> </div>