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Financial firms may cut dividends

June 11, 2008|From Bloomberg News

Goldman Sachs Group Inc., Citigroup Inc. and Bank of America Corp. may announce "dramatic" dividend cuts, according to a Deutsche Bank analysis of options trading and prices.

"The option market is pricing in a dividend cut for virtually every major U.S. financial services company," derivatives strategists Scott Weiner and Chris Hauck wrote.

Goldman, the world's biggest securities firm, may reduce its dividend by 26 cents to 9 cents.

Bank of America, the second-largest U.S. bank by assets, may cut its dividend by 26 cents to 38 cents. Citigroup, the biggest U.S. bank, may cut its dividend by 23 cents to 9 cents, the strategists wrote.

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