U.S. Bank, largest bank in area, cuts dividend
U.S. Bank slashed its dividend by 88 percent Wednesday citing “uncertainty in the financial markets and a weakening economy.”
CEO Richard K. Davis also noted the federal government’s growing emphasis on common equity as a measure of financial strength. Cutting the dividend will let the bank increase its common equity.
The Minneapolis-based bank has the largest share of the St. Louis deposit market at 18 percent.
The bank said money saved by cutting the dividend would hasten the day when it returns the capital it acquired from the U.S. Treasury under the bank recapitalization program.
Davis said U.S. Bank would restore the divided “as soon as possible.”
U.S. Bank earned $330 million in the last quarter of 2008, and is considered “well capitalized” under federal guidelines.
Jim Gallagher is a business reporter, covering banking and finance. He also writes a Sunday column on personal finance. 
