During the US banking crisis, all the banks that received TARP funds were required to suspend their dividend payments.
If building up capital is the goal, then cutting the outflow of capital is part of the process.
Why would the EU act in another way? Especially with a bank that has stockholders all over the planet. It's unreasonable to expect the EU to beef up STD's capital base while the bank continues to spew its 17% yield (based on the current dividend and stock price).
Look for a cut to ZERO for a while -- just like BP after the Gulf of Mexico oil spill.
Thank goodness the Spanish don't think like Americans. I predict they will cut the divi not end it. The only reason the divi is so high is because the PPS is falling. Their payout ratio is not over 100% which is a sure sign. I'm not a a buyer...yet.
To add, if you are using the TARP model as an example, ... all of the big banks were made to be a part of TARP to give the world the impression of stability and government backing, whether they needed it at the moment or not. This was to protect against any potential problems down the line. During that whole process none of them were allowed to give a dividend. So it is possible that the dividend would be curtailed, even though you think that the company can handle any future bumps that may come down the road on their own.