Business Digest || Bank dividend details awaited

Bank dividend details awaited

NEW YORK

Investors have been hounding banks for months about increasing their dividends now that the worst of the financial crisis is over. They may get answers as soon as today, when JPMorgan Chase & Co. becomes the first major U.S. bank to report its earnings for 2010.

It’s hardly going to be all good news when the banks release their results, however.

Investors want to know how much more banks may have to pay if they are forced to buy back bad home loans from big investors. Banks also are facing accusations of bungling crucial paperwork in foreclosures and an investigation by all 50 state attorneys general. Last week, the highest court in Massachusetts ruled against U.S. Bancorp and Wells Fargo & Co. in two closely watched foreclosure cases.

JPMorgan’s CEO, Jamie Dimon, has hinted in recent investor presentations that the bank could raise its annual dividend from 20 cents per share to as much as $1. If it gets approval from the Federal Reserve, JPMorgan could start paying higher dividends starting in the second quarter, which begins April 1.

Judge OKs deal against beneficiary

NEW YORK

A historic $7.2 billion deal was approved Thursday to settle a lawsuit brought against the estate of one of the oldest and wealthiest clients of disgraced financier Bernard Madoff.

U.S. Bankruptcy Judge Burton Lifland signed off on the deal at the urging of a court-appointed trustee seeking to recover funds for thousands of investors burned by Madoff’s epic Ponzi scheme.

“This is a unique and great day for customers of [Madoff’s firm],” trustee attorney David Sheehan said Thursday at a hearing in federal bankruptcy court.

Lawyers representing a handful of former Madoff customers opposing the settlement signaled they will appeal — a move the judge warned could further harm wiped-out victims waiting to recover at least a portion of their life savings.

“You must take into account the effect of these delays,” he said.

From wire reports

Selected local stocks

STOCK, DIVIDENDCLOSECHANGE

Aqua America, .62, 23.12 .08

Avalon Holdings,2.85—.05

Clear Channel, .80 58.16 .19

Cortland Bancorp, 5.35.05

Delphi Automotive, .02 .00

Farmers Nat., .12, 3.70 .25

First Energy, 2.20, 38.36.08

FirstMerit Corp., .64,19.24 —.14

First Niles Financial, .32,6.75.00

First Place Fin., 2.92.12

FNB Corp., .48,10.10—.28

General Motors,38.27—.35

General Electric, .56,18.60—.07

Motors Liquidation, .09.00

Huntington Bank, .04, 7.12—.10

JP Morgan Chase, .20,44.45—.26

Key Corp, .04,8.57—.20

LaFarge, 15.17 .14

Macy’s, .20, 22.99—.23

Parker Hannifin, 1.16, 89.23.57

PNC, .40,61.13—1.07

RTI Intl. Metals,26.29—.37

Rural/Metro, 14.34 .08

Simon Prop. Grp.,3.20,98.15.44

Stoneridge 15.90 —.04

United Community Fin. 1.54—.03

Selected prices at 4 p.m. Thursday. Provided by Stifel Nicolaus. Not to be construed as an offer or recommendation to buy or sell any security.