First Republic Bank, troubled over loan values and cash outflows, stated in a regulatory filing Friday that its board has decided to suspend payments on its preferred stock.
“The right of holders to receive dividends is noncumulative, and the Board is not required to declare a dividend payable in respect of any dividend period,” First Republic said, calling the move “a measure of prudent oversight.”
The decision involves seven series of preferred stocks, the bank said, and is meant to preserve capital, according to The Wall Street Journal.
