Barclays $9 Billion Dilution; Its Getting Better; The Bottom Is Here

Barclays diluting,#4 UK bank, plans to raise $8.9 billion to bolster depleted capital by selling 1.58 billion shares to

Japan's Sumitomo Mitsui Financial Group and Temasek Holdings (Singapore), China Development Bank and Qatar Investment Authority.

The offering was priced at a 9.25% discount to yesterday's close. All existing (and thrilled I'm sure) investors will be offered three new shares at 282 pence for every 14 they own.

Its Getting Better?... American Express, the biggest U.S. credit-card company by purchases and cash advances,CEO Ken Chenault:

"Business conditions continue to weaken in the U.S. and so far this month we have seen credit indicators deteriorate beyond our expectations."

The Bottom Is Near?... In Feb Barrons told readers to buy AIG;

May 5th Goldman Sachs recommended buying financial stocks; June 10th Merrill Lynch tolds clients to buy Lehman Bros.

Since then, Goldman reversed saying it was "clearly wrong"; Barrons admitted it made "a mistake" and Merrill cut its rating on Lehman.

Jack Ablin, CIO at Harris Private Bank in Chicago:

"As long as housing values continue to drop from month to month, it's impossible to know when the end of the credit crisis will be.

I want to see housing prices stabilize and increase before I put a stake in the ground and say `our problems are behind us
."

Hattip To Bloomberg.

The Nattering One muses... A few weeks ago, Wall Street analysts in unison with Parrot CEO's:

The Worst is Over, All is Well, The Bottom is Near and It's a Good Buy.

Perhaps they meant, its a "Good Bye", as in say good bye to your money?

Comments