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The projected Tier 1 common capital ratios achieved by the banks under the stress plan were as follows: Ally Financial: 4.4 percent Citigroup: 4.9 percent SunTrust: 4.8 percent MetLife: 5.1 percent The banks that failed the tests are likely to be asked to raise more capital, suspend planned dividends or take other measures to firm up their balance sheets.
In October Phelps announced $1.5 billion in planned dividends and buybacks, or 10% of its market value.
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But its share price fell by 10percentt because of a planned dividend cut.
It also shows that constrained firms are forced to burn a sizeable portion of their cash savings during the crisis and to cut more deeply planned dividend distributions.
With the tax rate on corporate dividends, now 15 percent, set to rise as high as 39.6 percent in 2011, some companies no doubt will accelerate planned 2011 dividend payments and make them before the end of 2010.
UBS Plans $4.9B Dividend As Profits Top Estimates.
At that time the company was preparing to pay its first-ever dividend and planned to convert to an S corporation to avoid double taxation on the dividend.
Dynegy originally planned to cut the dividend in half.
The company also said it planned to increase its dividend.
He did not say whether the bank planned to raise its dividend, now a penny, or buy back shares.
The company said Wednesday that it planned to double its dividend in the current year, to 50 yen a share.
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