No, that bit about dividends can't possibly be right. Relatively few public companies pay a dividend, and basically none of the other companies face shareholder lawsuits about the absence of a dividend.
And if Citi were a poorly programmed automaton then it might make sense to avoid blaming its board for politically boneheaded moves; but its board is made up of directors who _ought_ to be spending some energy not pointlessly offending a public on whose dole they now find themselves. The shareholders will be (rightly) for more offended if the board so pisses off Treasury that the public assistance dries up.
I agree, however, that the (then-) government should have negotiated (decreed?) better terms for the bailout money.
>No, that bit about dividends can't possibly be right. Relatively few public companies pay a dividend, and basically none of the other companies face shareholder lawsuits about the absence of a dividend.
Relatively few public companies are in Citi's situation. I wasn't saying all public companies have to a pay a dividend or face a lawsuit. Supposing Citi is practically insolvent, it would be irresponsible (legally/fiduciarily, not morally) to shareholders not to try and launder out as a much money as possible. Once it is paid to shareholders as a dividend, creditors can't go after it.
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No, that bit about dividends can't possibly be right. Relatively few public companies pay a dividend, and basically none of the other companies face shareholder lawsuits about the absence of a dividend.
And if Citi were a poorly programmed automaton then it might make sense to avoid blaming its board for politically boneheaded moves; but its board is made up of directors who _ought_ to be spending some energy not pointlessly offending a public on whose dole they now find themselves. The shareholders will be (rightly) for more offended if the board so pisses off Treasury that the public assistance dries up.
I agree, however, that the (then-) government should have negotiated (decreed?) better terms for the bailout money.
>No, that bit about dividends can't possibly be right. Relatively few public companies pay a dividend, and basically none of the other companies face shareholder lawsuits about the absence of a dividend.
Relatively few public companies are in Citi's situation. I wasn't saying all public companies have to a pay a dividend or face a lawsuit. Supposing Citi is practically insolvent, it would be irresponsible (legally/fiduciarily, not morally) to shareholders not to try and launder out as a much money as possible. Once it is paid to shareholders as a dividend, creditors can't go after it.