“Good Guy” banks that received taxpayer dollars are under increasing pressure to eliminate or reduce their dividend. Here’s a guess at some of their defenses:

We did not want these billions. We took them against our will, and in the spirit of cooperation. If we refused, our more troubled brethren would have been singled out as possibly “insolvent”.

Furthermore, refusing a big cash injection would have left us at a competitive disadvantage. Besides, we never needed or wanted it. Even though the government’s terms were much better than any private source would have offered to us.

Will they keep paying big dividends while receiving taxpayer money? Mr. Obama has signaled strict, transparent, and less favorable bailout terms. We’ll see how it plays out soon. Next week should be another interesting one for financial stocks.

There’s also the seizure of First Centennial to consider, which was announced after the close Friday. Estimated cost to the FDIC: $227 million. Not a huge chunk, but still worrying. And there’s something… dishonest about Friday-evening press releases that makes me skittish.