I'm Melissa Lee and this is Fast Money Tonight's Trader lineup Tim Seymour

Karen Finerman Brian Kelly and Kate Baddis CEO Grace Capital will join us in just

moments. We start off with big breaking news on the banks just moments ago

the Fed giving the okay for buybacks and we

are already starting to get banks announcing their plans. Let's get straight to

Leslie Picker with all the details. Leslie. Hey Melissa in an unprecedented second stress test this year the Fed said it will allow

banks to resume buying back stock with limitations after they were prevented from

doing so earlier this year JP Morgan has already said its board has authorized a $30 billion buyback program

to begin in the first quarter of next year, and that stock popping on the news.

Share repurchase is made up about 70% of the industry's

capital payout to shareholders pre-COVID, but the largest U.S. banks voluntarily

suspended buybacks in March as the pandemic

shutdowns that royal the economy and the financial markets.

The Fed then said in June that all banks subjected to its stress tests

were required to halt their buyback programs and cap their

dividend payouts. Now today the Fed said that banks could restart share repurchase

expanding similar limitations already in place with dividends.

These amounts are based on a formula that's essentially tied to the last year of the bank's income.

Now these rules will be in place through the first quarter of 2021.

The Fed notes, they may be extended after that.

Under the stress test, all 33 banks maintained enough of a cushion

for their minimum risk-based capital requirements levels that will not reset at this time,

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