Types Of Bankruptcy

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Unisys Research Reveals Mortgage Knowledge Gap (FinanzNachrichten)  ::? Unisys Research Reveals Mortgage Knowledge Gap?:: LONDON, August 28 /PRNewswire/ -- Research Reveals: LONDON, August 28 /PRNewswire/ --

June 20th, 2008

Shareholders take brunt of banks’ capital raising

America’s banks and brokerages are scrambling to raise badly needed cash, but it may be at the expense of shareholders.

Since the subprime mortgage market imploded, financial companies caught in the fallout have been raising capital in two major ways _ cutting dividends and issuing more shares. Both methods erode shareholder value; analysts believe the industry is poised for more.

‘The market is now seeing a substantial increase in financial companies issuing common and convertible instruments in an effort to shore up liquidity,’ said Standard & Poor’s senior index analyst Howard Silverblatt. ‘The additional financing gives them immediate breathing room, with the payback being longer term dilution.’



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