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Yes but they could have forced an equity raise before the crisis? As in "a bank with our national reputation riding on it needs x amount of equity"
by lordnacho 4y ago
Yes but they could have forced an equity raise before the crisis? As in "a bank with our national reputation riding on it needs x amount of equity"
- blitzar 4y agoAhh but that would trigger a downgrade by analysts as the return on equity for the bank would reduce - at the top price companies do buybacks of the shares they issued at low prices ... I dont want to come over as a socialist, but if your country has a bank with your national reputation riding on it, it should probably be part nationalised anyway - maybe someone could design a hybrid bond/equity/warrant/option for the state to hold with their half. If a corporation is borrowing your name and reputation you deserve to get paid for it (in non trickle down hiring and taxes $$'s).