Sheila Bair to join Santander board


Instead of outrage over the continuing "revolving door" between D.C. regulators and the banks (of which Bair was loudly critical of), keep in mind banks - especially the European ones - need qualified, independent directors, writes Antoine Gara.

Santander (SAN +2.3%) is a case study - maintaining a fat dividend over the past few years at the expense of building up very much new capital (though it has sold some primo assets). Wells Fargo, by contrast, pays out a lower share of profits even though its financial position is far stronger. Santander's ratio of nonperforming loans rose to 5.43% in Q3, a nearly unimaginable level for the large U.S. banks. Its NPL reserve coverage, however, has fallen from 72.4% a couple of years back to 63.9% at the end of Q3.

Would the Fed ever allow a bank in this condition to continue with such a large dividend?

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Comments (2)
  • wrowlandsr
    , contributor
    Comments (4) | Send Message
     
    SAN has been paying a dividend in which about 90% of the shareholders take the dividend in newly issued stock rather than cash. Their capital has continued to build during this whole economical downturn. It appears that the writer of this article only reads the headlines and does not truly analyze the results of operations; press releases and financial statements.
    28 Jan 2014, 06:00 PM Reply Like
  • dancing duke
    , contributor
    Comments (183) | Send Message
     
    the dividend amount hasn't change in many years,
    the share price
    has fallen considerably during this period thus the higher yield.
    This bank share price is victim of a big discount because their head office is in Spain.
    Lastly most of the dividend is paid in new shares
    To end, unlike every major American bank ,they did not need or take any government bailout.
    Need I say more
    28 Jan 2014, 06:27 PM Reply Like
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