RBS (RBS): Q1 pretax loss of £1.4B, widening from a £116M loss in Q1 2011. Much of...

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Zheeeem Comments (155)
 
Resume payment on the preferred shares indeed. $0.01 per share? Yikes. From page ix of the RBS report: "The Directors have declared the discretionary dividends on Series M, N, P, Q, R, S, and T noncumulative dollar preference shares of US$0.01 each for the three months to 30 June 2012..."

Well, I guess $0.01 is infinitely better than $0.00.
4 May 2012, 04:40 AM Reply Like

jerryfocone Comment (1)
 
I think you are refeering to common stock they cannot pay on prefereds until they resume on common stock
4 May 2012, 08:30 AM Reply Like

Zheeeem Comments (155)
 
What makes you think that?
4 May 2012, 09:46 AM Reply Like

Daniel Su Comments (13)
 
If you are interested in RBS common stock or preferred stock,
Great article by Reuters

http://bloom.bg/K1sNxY

Actually RBS needs to pay preferred holders first, before resuming paying dividends on Common stockholders, but there are many challenges ahead:
1.first they plan to payoff part of the emergency loans first provided by US FED and B of England.
2 resume paying preferred dividends suspended by EU financial commission,
3. Potential losses from financial impact of Southern European countries.
4 RBS need to raise the capital level.
5. UK government will control the bank until RBS stock goes up above the government purchase price, then exist the control of the Bank. Politicians who supported RBS bail out are not willing to show losses on government investment, so it will be probably another year and half to 2 years, before RBS can assess the financial condition before they are able to pay common stock holder dividends.
5 May 2012, 02:54 PM Reply Like

larry1171 Comment (1)
 
I never heard od Dividends on common stock having to be paid before dividends on Pref Stock can be resumed. Pref always takes precedence over common, that's why it's called preferred.
5 May 2012, 04:18 PM Reply Like