TCF Financial: Take That, Greenspan

Jan.23.09 | About: TCF Financial (TCB)

In an obvious reference to Alan Greenspan's loose monetary policy in 2002 and the mis-management of the money center banks and brokers, TCF Financial's (NYSE:TCB) ("Takin' Care of Business") Chairman wrote this pointed paragraph in his earnings release yesterday (see conference call transcript):

"TCF did not engage in the activities that have created so many problems in the financial industry,” said William A. Cooper, Chairman and CEO.

“TCF has not made subprime, broker purchased, Option ARM, teaser rate, out of market, low doc or other risky mortgage loans. TCF kept on its balance sheet all the loans it originated. TCF has no auto or credit card portfolios or asset backed commercial paper. We have never owned Fannie Mae or Freddie Mac preferreds, trust preferred securities or bank owned life insurance (BOLI). TCF does not have any derivative contracts. Higher charge-offs at TCF have been primarily due to the imprudent behavior of our competitors and an ill-advised monetary policy that created the unprecedented rise and fall of the housing markets. TCF remains profitable, solidly capitalized and ready to take advantage of prudent growth opportunities. TCF declared a $0.25 quarterly dividend payable to stockholders on February 27, 2009. We expect to continue our dividend in future periods subject to maintaining solid profits and strong capital.

"In accordance with our compensation programs, TCF Executive Management received no bonuses for 2008. As Chairman and Chief Executive Officer, I receive neither a salary nor a bonus."

I don't own TCF, nor have I ever done research on the stock. However, based on that one paragraph, I'm going to dig in a bit further. A 10% dividend, if it can be maintained, makes me very interested. Oh, and I nominate TCF Chairman William Cooper for Treasury Secretary.