Zombie Banks Finance Buybacks, Dividends With Preferreds They May Never Redeem
by Tyler Durden
ZeroHedge.com
03/11/2015
“Much of the money for buybacks and higher dividends is coming from the banks issuing preferred shares. To investors they look a lot like bonds that pay interest. But for regulators, preferred shares serve as a cushion against any future losses, in part because they never have to be repaid,” Reuters notes, suggesting TBTFs are effectively robbing Peter to pay Paul.
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