Actually, you could reverse the dividend declared legally and save $1.05 of book value, and it would look good in court from shareholder lawsuits. Increasing book value in a declining MBS market shows management is on the ball.
I found it, in fact dividends can be declared, and then not paid. They would go into DIVIDEND PAYABLE account on the ledger and be a liability. I have heard of some banks who declared dividends but didn't pay them due to loan losses growing and the FDIC came in.
I believe if Treasuries continue to rally, the pay date can be changed and the dividend payable even can be reversed up until dividend pay date. Anyone think differently?