Investors Excited by Banks Issuing Common Stock
What am I missing here? All wire services are making this prolificate annoucements that Bank of America, JP Morgan Chase and others are raising hundreds of millions of dollars to pay back TARP but selling newly created common bank stock!
Hello! Isn't that a form of dillution of shareholder value. More stock outstanding less value!
I really feel sorry for all of the finanical MBAs out there because all of the economic rules that I always cherished are being broken on a daily basis. Then again what the hell do I know!
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