Big US banks' buybacks and dividends may not reflect financial health
The money comes from the preferred shares the banks are selling at a relatively high dividend
Thu, Mar 12, 2015 - 5:50 AM
Citigroup issued US$3.7 billion of preferred shares in 2014 and has disclosed plans to issue US$4 billion of preferred shares this year while JPMorgan issued US$9 billion of preferred shares this past year.
BIG US banks, including JPMorgan Chase & Co and Citigroup Inc, are expected to win Federal Reserve backing later on Wednesday to buy back more shares and increase their dividends in the coming year, but the approvals may be as much about the institutions' financial...