Germany heads for deep recession as EU leaders fail to agree Covid-19 rescue – business live – The Guardian, Theguardian.com
The insurance companies have been hit after the (Bank of England) repeated its warned against dividends to shareholders during the crisis.
The Bank of England has long been known to raise the proverbial eyebrow when it doesn’t get its way. Today’s statement though was more of a prod in the eye – particularly towards
Legal & General , which is paying out £ m in dividends despite the warning.
The FTSE 250 insurer justified the payout on the basis that its finances were relatively unaffected, and it is not receiving any public support for furloughed staff. It also said that dividends are important for institutional shareholders including the pension funds of millions of Britons.
Wednesday’s share price fall is smaller than the rise on Monday, after L&G confirmed that it would pay the dividend. That suggests that at least some investors think that L&G will just take the reputational hit.