http://www.ustreas.gov/press/releases/reports/document5hp1207.pdf

As you know, deal terms often change during the negotiating process and during the time the transctions documents are being drafted, proofed, redrafted, etc. The final executed transaction document terms will often differ from those of the term sheet.

I find it hard to believe the Treasury would charcterize the treatment of common dividends one way with reporters when in fact a totally different deal was structured.

As long as the QFI has outstanding preferred stock it can not pay dividends. Once they have sold off all preferred stock issued, dividends may be paid at current levels (5% for preferred stock). If agreed by the TS, then dividends may be increased on common stock.

So the only way dividends can not be paid is if the QFI is unable to sell all of the preferred stock that was issued. Unless there is a conspiracy to make sure there is outstanding preferred stock, then dividends get paid.

The third guy speaking, says that dividends are being paid by bailed out banks in the U.S. (but not in England).

Did you know that Goldman Sachs has already accrued over $13 BILLION for compensation for its employees through the first 3 quarters? And Morgan Stanley has accrued $10.7 BILLION? For Goldman, that comes out to over $420K per employee for only 3 quarters…including secretaries, maintenance people and the cafeteria workers.

After creating the biggest financial mess we have seen since 1929 (and possibly ever), these guys are still going to receive multi-million dollar PERFORMANCE bonuses, paid for by the taxpayers via bailout money, the Fed’s purchase of toxic securities, and loan guarantees. Now THIS is criminal. Given the outsized response to Sarah Palin’s $150,000 clothes purchase, don’t you think that, upon hearing this, the public will finally have just had enough?

If you do nothing else, Barry, please pick up this little tidbit (I introduced it to CNN and they ran a story on it last night on The Situation Room at 6:30pm) and continue to push it until the banks relent and put a hold on bonuses until the taxpayer is made whole, and the companies are in NO danger of imploding!

Maybe he was extending his theory that the major banks would need more cash or be taken over a few quarters down the line…therefore his dividend call is predicated on economic events/impending portfolio losses and not something internal to current TARP regulation.

Barry, are you selling into the strength?

That would prove to me once and for all there is a God. Until then, the verdict’s still out.

The low prices of energy and other commodities will create a new boom
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Just like everyone was sure housing was the best investment in 2003.

Too early to go against the crowd.