>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.