Author Topic: C - Citibank  (Read 192682 times)

Dazel

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Re: C - Citibank
« Reply #660 on: Today at 05:05:01 AM »


They will be looking to up their buy backs like B of A did last year and will do again this year with the Fed now. Discussions would be ongoing on their 10 months of profitability. By doing it this way they have no one scrutinizing how much they get in the okay for in capital returns. We discussed this before here but the time for these addition should come soon and allow them to take ďmoreĒ advantage of these low share prices. Mr. Buffett sees it too....you will likely see him have to show Citi in his 13f next time itís just dirt cheap and printing cash right now. You will also see him add to BAC and JPM...
Anyone thinking near term recession has to know there is no one more connected to the economy then him.


Spekulatius

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Re: C - Citibank
« Reply #661 on: Today at 08:09:30 AM »
I think the regulators prefer buybacks, which are viewed as being easier to reduce when times get bad. We all know how loath companies are to cut a dividend.

I donít know. Cutting dividend would be the companies problem, not the regulators.
To be a realist, one has to believe in miracles.

Viking

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Re: C - Citibank
« Reply #662 on: Today at 08:49:06 AM »
I think the regulators prefer buybacks, which are viewed as being easier to reduce when times get bad. We all know how loath companies are to cut a dividend.

I donít know. Cutting dividend would be the companies problem, not the regulators.

True. However, if a bank stops buying back shares (in an economic downturn) they will get little grief from investors. But if a bank reduces its dividend it will be punished by investors. So banks will not want to reduce their dividend at almost any cost. I think the regulators understand this and as a result would prefer companies to buy back stock over dividend.