i agree. all banks with tarp balances should be required to suspend all dividends until tarp is paid. i think pps would increase quicker without this .04 as balance sheet would grow stronger . i do not know anyone buying this stock for its dividend
The problem is that suspending dividends would hurt the share price more than it would help the balance sheet at this point. There are funds that won't hold stock that doesn't pay a dividend and some indexes that won't list without a dividend. That's why the government allows them to maintain a minimal dividend.