We reached out to several of the banks that didn’t pay TARP in August and this is what they them had to say:
AnchorBank, in Wisconsin, tells us that they had to suspend the Treasury dividend payments to “preserve capital at both the holding company and bank levels.”
“The CPP/TARP program anticipated that the TARP dividend may be deferred by some banks. Upon the execution of a successful capital event, Anchor expects to be able to pay any and all deferred dividends.” It says it has the option to defer it for up to six quarters.
And UCBH Holdings, in California, said that its board of directors chose to suspend the dividend payments “in order to bolster capital ratios and preserve capital.” There is no “specific established time” to resume the payments.
AIG declined to comment. The Treasury didn’t respond to our requests for comment.