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

Black, Lamont K.; Floros , Ioannis; Sengupta, Rajdeep

Working Paper

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

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.

Keywords: Bank equity; Financial crisis; Troubled Asset Relief Program; equity issuances; Commercial banks;

JEL Classification: G21; G28; G32;