Posted on 05/11/2009 12:57:51 PM PDT by COBOL2Java
Capital One Financial Corp., which just passed the government’s bank stress test, is launching a common stock sale to be free of Uncle Sam’s investment.
McLean-based Capital One (NYSE: COF) announced Monday that it would sell 56 million shares of its common stock, and possibly 8.4 million more if there was enough demand, and use the proceeds to repay loans received from the government last fall. The public offering price will be $27.75 per share. Capital One received $3.55 billion in November in exchange for preferred stock and warrants as part of the U.S. Treasury’s Troubled Asset Relief Program.
Barclays Capital Inc. is acting as sole book-runner and manager of the offering. Capital One said the stock offering would be made only by means of a preliminary prospectus supplement and accompanying base prospectus from Barclays Capital.
This is interesting, considering Capital One passed the stress test and was deemed to have enough capital.
This is interesting, considering Capital One passed the stress test and was deemed to have enough capital.
Just as an aside, Capitol One has the worst customer service on Earth. You couldn’t pay me to take one of their credit cards.
Except, last I heard, there is no avenue available for TARP receipients to pay back those funds.
Circle game for jerks.
Ummmmm...instead of doing this now, couldnt they have done it to have gotten the money (instead of the TARP funds) instead?
No. The credit markets were not working last fall. Plus they were one of the banks that was strong-armed into taking the money.
It will leave them in a better legal position. The false ‘messiah’ wants to control them as well. I screwed up and learned my lesson with credit cards, as I should have, but how many younger individuals will not?
Not investment advice, but if I or anyone wants to buy a CD, at least we can make the choice not to feed the beast,much like some have said they will not by Chrysler or GM.
If you can get a verifiable partial list from the Fed please ping me.
What do you mean “make up” stock?
That’s how companies raise capital, well one way they do - sell their stock. It’s nothing new.
I’ve heard people say that, but honestly, I have a Capital One card and I’ve had a good experience with them.
And , yes, I too love and hate cap. 1.
It's convenient until there's a problem, then it's party time with all the worlds non-english as they try to "help".
I might add, see/rent the movie OUTSOURCED, it explains everything.
They're not working now either. Look at the Overnight Index Swap.
Beg to differ. Bank of America and AT&T Wireless make Capital One look stellar in comparison, and I deal with all three.
You don't make up stock. You issue stock causing dilution of the current stock holder as now each stock holder owns less of the company than they did before. There is no free lunch, the current equity holders pay (so to speak).
Your right, I don’t make it up, they do.
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