Which Banks Will Raise Their Dividend First?

Virtually every major U.S. bank slashed its dividend during the credit crisis. One factor that has kept those dividends at rock-bottom levels is the lingering uncertainty concerning new capital adequacy standards. In Basel, regulators finally agreed on global minimum capital standards this month. In light of the new requirements, which banks will raise their dividend soonest? What is this Tier 1 capital you speak of?The new standard that banks much achieve is a minimum 4.5% common equity ratio and a 6% Tier 1 capital ratio. Tier 1 capital is the highest grade of capital, consisting of equity capital (common shares and non-cumulative preferred shares) and disclosed reserves.... Read more