PPT, Bank Of America, More From Davos
PPT? New York State's insurance regulators met today...
with "un-named" U.S. banks to discuss raising new capital for bond insurers, said a department spokesman.
The capital would help preserve the top AAA credit ratings for the bond guarantors.
Hey Mister, Can you spare $6 billion? B of A, needs $6 billion.
CEO Kenneth Lewis said he wants to rebuild the bank's Tier 1 capital ratio, which measures its ability to cover losses, to 8% of assets.
The #2 US Bank plans to offer $6 billion split between preferred and convertible preferred shares.
The convertibles may pay a dividend of 7.25 to 7.75% and carry a conversion premium of 20 to 25%.
More From Davos With Love... Former U.S. Treasury Secretary Lawrence Summers:
"It's hard to give central banks a very high grade over the last couple of years on recognition of bubbles and actions taken to address them in the policy or regulatory spheres."
Morgan Stanley's Stephen Roach on the Fed's reactions: "It's a dangerous, reckless and irresponsible way to run the world's largest economy."
George Soros: "Central banks lost control of the situation...
when they allowed financial institutions to develop new financial instruments which they themselves didn't understand." Hattip to Bloomberg.
with "un-named" U.S. banks to discuss raising new capital for bond insurers, said a department spokesman.
The capital would help preserve the top AAA credit ratings for the bond guarantors.
Hey Mister, Can you spare $6 billion? B of A, needs $6 billion.
CEO Kenneth Lewis said he wants to rebuild the bank's Tier 1 capital ratio, which measures its ability to cover losses, to 8% of assets.
The #2 US Bank plans to offer $6 billion split between preferred and convertible preferred shares.
The convertibles may pay a dividend of 7.25 to 7.75% and carry a conversion premium of 20 to 25%.
More From Davos With Love... Former U.S. Treasury Secretary Lawrence Summers:
"It's hard to give central banks a very high grade over the last couple of years on recognition of bubbles and actions taken to address them in the policy or regulatory spheres."
Morgan Stanley's Stephen Roach on the Fed's reactions: "It's a dangerous, reckless and irresponsible way to run the world's largest economy."
George Soros: "Central banks lost control of the situation...
when they allowed financial institutions to develop new financial instruments which they themselves didn't understand." Hattip to Bloomberg.
Comments