The coming US dollar crisis Message Board

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Strategies & Market Trends : The coming US dollar crisis

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To: Tommaso who wrote (8751)	6/11/2008 7:49:50 AM
From: Giordano Bruno	Read Replies (1) of 71456

Merrill Oppenheimer says they do not expect any of the financial institutions to be "under-capitalized" by the standards of the regulators and they anticipate this range to be between 8% and 11%. However, they did not rule out the prospects of further capital raises by the group as they will face more scrutiny regarding capitalization. The firm says based on their analysis, a $1 bln equity capital raise below $38 per share for Merrill would be 80% additionally dilutive than a straight common offering due to the fact that MER would actually be required to issue additional shares to Temasek if it were to issue stock below its original investment price at $48. A $3 bln equity capital raise at $38 per share would be 13.5% dilutive. A $5 bln equity capital raise at $38 per share would be 17.3% dilutive.

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