Reading that the UK regulators had not only told the banks not to pay dividends, but also, apparently, not to buy back shares or pay cash bonuses to senior staff made us wonder if this was actually a poor taste April fool’s joke. After all, a lot of pensioners rely on the dividend income from the financial sector in times of ludicrously low yields on government debt and cash and many of the shares had already gone ex-dividend (wonder if anybody sold? Hmm). But no, it was the Bank of England threatening that it was “ready to consider use of our supervisory powers” that forced them to make the banks to make co-ordinated announcements. Considering that the Bank itself declared that all the Banks had strong capital and good liquidity, this looks like regulatory over-reach.

In this of course, rather like the decision to lock down the economy, the UK regulator has given in to pressure to follow the Continent after the ECB ordered a freeze on dividend payments last week. Presumably the Swede’s won’t follow?