ANSWERS: 1
  • First off not all banks are loosing money-the ones making money are certainly within their rights paying bonuses and dividends. Secondly, even when a company is loosing money it is common for people in certain departments to get bonuses if their department does well.(think of the real estate department being in the crapper but the hi-tech department doing well). Third, dividends sometimes paid out of retained (as opposed to current) earnings. Ceasing dividend payments is a drastic step that seriously erodes investor confidence. Nothing unusual about the situation you described. No offense, but your GF doesn't seem to know much about how the financial world works.

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