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Raising capital when the going gets tough: U.S. bank equity issuance from 2001 to 2014

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  • Lamont K. Black
  • Rajdeep Sengupta
  • Ioannis Floros

Abstract

The authors studied bank equity issuance during 2001?14 by publicly traded U.S. banks through seasoned equity offerings (SEOs), private investment in public equity (PIPEs), and the Troubled Asset Relief Program (TARP). Results show that private investors were an active and important source of bank recapitalization in the United States as issuance through SEOs and PIPEs peaked in the recent crisis.

Suggested Citation

  • Lamont K. Black & Rajdeep Sengupta & Ioannis Floros, 2016. "Raising capital when the going gets tough: U.S. bank equity issuance from 2001 to 2014," Research Working Paper RWP 16-5, Federal Reserve Bank of Kansas City, revised 01 Jun 2016.
  • Handle: RePEc:fip:fedkrw:rwp16-05
    DOI: 10.18651/RWP2016-05
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    File URL: https://doi.org/10.18651/RWP2016-05
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    More about this item

    Keywords

    Bank equity; Commercial banks; Equity issuance; Financial crisis; Troubled Asset Relief Program (TARP);

    JEL classification:

    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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