Quote:
Originally Posted by Bertuzzied
This won't affect us unless the major banks also drop their rates by 75 basis points.
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They were roasted when they didn't follow suit during the last drop.
Royal Bank has announced a new stock offering in an attempt to increase liquidity.
http://www.financialpost.com/story.html?id=1050259
Quote:
RBC's "Tier 1 ratio" was about nine per cent, and "it seems like the market wants more," said Ohad Lederer, an analyst at Veritas Investment Research in Toronto. The RBC share issue could herald similar fundraising by a couple of other banks, Mr. Lederer said.
RBC said its Tier 1 capital ratio would rise to 9.9 per cent with the issue, or would rise to 10.1 per cent if the underwriters exercise the over-allotment option. The minimum Tier 1 capital ratio in Canada is seven per cent, but the big domestic banks range from 9.1 to 10.5 per cent.
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The big banks complained about the ratios when the markets were hot, but they are in better shape because of them now.
Edit: perhaps this will fit better in the other finance thread.
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