Thursday, November 4, 2010

Fed to Let Banks Increase Dividends

http://online.wsj.com/article/SB10001424052748703805704575594650694019436.html?mod=WSJ_hp_LEFTWhatsNewsCollection

What I'd like to know is if these healthy banks were involved in the MBS scandal or foreclosure fraud, why aren't their assets frozen?
Should they be allowed to indulge with money they fraudulently stole?

According to people familiar with the matter, regulators as soon as next week are expected to give guidance outlining the standards banks must meet to increase dividend payments. The Fed is expected to take a conservative approach that would require banks to demonstrate their ability to meet tough new international capital standards and any requirements stemming from the U.S. financial-regulatory overhaul.

Many U.S. banks are itching to boost payments to shareholders, citing improved profits, because they have long relied on a steady stream of dividends to lure investors. But they have been in a holding pattern as regulators across the globe hashed out new rules requiring banks to hold more capital as a buffer against future losses