Dividend Policy Clouds Buffett Payback

Goldman Sachs GS' efforts to repay a $5 billion preferred equity investment made by Warren Buffett's Berkshire Hathaway BRK have hit a snag, The Wall Street Journal reported Monday. Goldman must get approval for the move from the Federal Reserve, and the Fed is reluctant to okay it before clarifying its policies on bank dividends, the newspaper reported, citing anonymous sources. At issue is the capital cushion regulators require banks to hold in the wake of the financial crisis. Goldman secured the Buffett investment in September 2008, arguably the scariest month of the crisis. Since then, banks including Goldman, have been conserving capital as they wait for clarity on what are widely understood to be tougher restrictions from regulators. Continue reading the article.