Fed to banks: Ask us before you pay dividends

Full Story At  msnbc.com

WASHINGTON – The Federal Reserve is letting banks know they need to be careful when they decide to pay dividends to shareholders.

The central bank, which regulates the nation’s large bank holding companies, said in a guidance letter on Tuesday that banks need to consult with the Fed if they plan to pay any dividends that could raise “safety and soundness concerns.”

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