ROYAL BANK ADS (RBS)

[mlkrborn]

dividends
"Some commentators are also predicting the moratorium on dividend payments that the UK Government introduced as part of its £37bn rescue of RBS, HBOS and Lloyds TSB may be lifted, or at least revised, this week.

The Government has faced a backlash for its stipulation in the bailout that ordinary share dividends will not be made available until its own preference shares have been paid off.

There have been suggestions that this measure cannot be scrapped because of European Commission rules, but analysts are speculating that an announcement by the Government on the situation could be made to coincide with RBS and Lloyds TSB issuing their offer documents.

Mamoun Tazi, analyst with Man Securities, said: "If there are any surprises this week, it could be that the moratorium on dividend payments is abolished.

"The Government has been asked to reconsider its stance and this could be reflected in the prospectus being published this week."
source scotman nov 2 2008