But things are great, as long as we can steal tax payers money for free. And we know we can because we own washington http://blogs.wsj.com/marketbeat/200...uarter-includes-dividend-cut/?mod=rss_WSJBlog
In summary, they cut the dividend and they need to raise capital to pay back a loan with a 5% interest rate (never mind that 10 bil loan with a 10% rate), yet they somehow smashed earnings estimates. Gawd, I love the fundamentals.
If it was not for Obama adding those strings attached which limited Exec bonuses they would have kept the TARP. But in reality they never needed it so now they will just sell stock and cut dividends so that Bonuses could be paid.
They didn't cut the divies on the preferreds. Long the B's here. Then again, Citi didn't cut the divies either nor did some of those Japanese zombies. Long live the zombies!
If they didn't need the money, why do they need to raise capital to repay the debt and why did management agree to pay Warren Buffet 1 billion a year in interest (not to mention stock options that will probably dilute equity holders)? So far it looks like I seriously underestimated mark to fiction accounting, with WFC and GS suddenly smashing estimates and BAC, C and JPM sure to follow. It appears this bear market rally is a direct result of the change in accounting rules and there will be hell to pay if the economy doesn't turn around in the next few quarters. How long can corporate accountants sweep this crap under the rug?
Could it be better to Prohibit DIVIDEND Payments to TARP Recipients than to to Prohibit Bonus Payments ?