by Mathew Katz

Our investigative reporter friends over at ProPublica are reporting that a number of small and midsize banks that got bailout money have stopped paying quarterly dividends to the government in order to save capital. At least 18 banks have either decided to stop the payments, or have been ordered to by regulators.

What's concerning is that back in March, the Obama administration declared each of these banks "healthy." If these banks are having trouble now, post-bailout, it brings into question whether they could have survived without TARP.

There's another implication to this: not paying your dividends has consequences. After six quarters of not paying, the Treasury has the right to appoint two members to the bank's board of directors.

Check out the full report — it's interesting stuff.