Today, troubled thift bank/mortgage lender IndyMac's (IMB) CEO recommended that the company cut its dividend by 50%.
When the company declared the dividend last quarter, they included this statement:
"It remains an important goal for Indymac to preserve the current common dividend through this down cycle for our industry, although there can be no absolute assurance we can meet this goal if conditions deteriorate."
So in other words, things are continuing to deteriorate. Here was today's statement:
"At this level, I believe that our dividend payout will be at a more normal ratio to earnings for a
thrift. I also believe that we will be able to sustain this level of dividend payout through the current down cycle for the mortgage and housing markets, which is presently forecasted to worsen before it gets better."
Around the corner, Bank of America's (BAC) $2 billion dollar investment in Countrywide (CFC) was dipping into the red as the price fell below $18 this morning. When the investment was announced shares of Countrywide had briefly spiked above $24.
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