The Federal Reserve announced on Friday that it will allow the nation’s big banks to resume share buybacks in the first quarter of 2021 subject to certain rules and that the industry fared well in a second round of stress tests.Dividends will continue to be capped, the Fed said, and the sum total of a bank’s dividends and repurchases in the first quarter cannot exceed the average quarterly profit from the four most recent quarters.Share repurchases are important for the industry, typically making up about 70% of the industry’s capital payouts to shareholders. JPMorgan Chase, the largest U.S. bank …
