The Residential Real Estate Crash Index Message Board

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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: DebtBomb who wrote (160665)	10/28/2008 9:50:23 AM
From: Ken98	Read Replies (1) of 306849

Why just cut the divi 26%, why not 100% if they are having to go hat in hand to Uncle Hank?? <<Zions Bancorp to receive $1.4B Treasury investment Tuesday October 28, 9:09 am ET Zions Bancorp gets approval for $1.4 billion in capital from Treasury; cuts dividend by 26 pct SALT LAKE CITY (AP) -- Zions Bancorp said Tuesday that is has received preliminary approval from the U.S. Treasury Department to receive a $1.4 billion investment under the government's capital purchase program. Zions said it plans to use the capital for "prudent lending." It also announced that it will cut its quarterly dividend by 26 percent. As part of its $700 billion financial rescue package passed last month, the government is pouring $125 billion through stock purchases into nine large financial companies. Another $125 billion is being made available to other banks. Several financial institutions, including Capital One Financial Corp. and SunTrust Banks Inc., have received preliminary approval to participate. During the third quarter, Zions increased its capital by nearly $300 million through the issuance of common and preferred stock. The addition of the new capital through the Treasury program will raise the bank's Tier 1 capital ratio to 10.90 percent from 8.07 percent, Zions said. Capital ratio is essentially a measure of a company's cash versus debt. Zions said it is cutting its regular quarterly dividend by 26 percent to 32 cents. The dividend is payable on Nov. 19 to shareholders of record as of Nov. 5. "This modification to our dividend will allow us to further strengthen our capital base during a period of slower activity in the economy, while enabling us to continue to expand our lending in ways that will help bring the country out of the current financial crisis," said Chairman and Chief Executive Harris Simmons. Zions shares rose 49 cents to $35.05 in premarket trading.>>

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