Would a bank (ie. chase, suntrust, wells fargo) benefit from raising capital through the issuance of equities?

The later capital raising measures at enormous U.S. banks counting JPMorgan Chase & Co, American Express Co and SunTrust Banks Inc could be a step within the right heading, a few Divider Road investigators said.

Bank of America Corp, JPMorgan and a few other banks said they have raised at slightest $18 billion as banks scramble to remove themselves from Washington’s grip. JPMorgan sold $5 billion of stock, Morgan Stanley $2.2 billion and American Express Co $500 million after the Government Save on Monday forced capital-raising prerequisites on huge loan specialists trusting to reimburse bank bailout funds. “New rule the show of thumb to reimburse TARP:

Raise 20 percent (of extraordinary TARP amount),” FBR Capital Markets examiner Paul Miller said.

JPMorgan has beaten its peers to reimburse government cash with its activities, which may deliver it the title of the most secure bank in America, ingenious keeping money examiner Richard Bove said. “This is likely to be seen exceptionally emphatically by the markets,” examiner Bove said in a note alluding to JPMorgan’s raised of capital.

Robert W. Baird examiner David George said the move by JPMorgan has negligible affect on capital proportions and the end of the TARP favored profit is generally 3 percent accretive to normalized profit per share. “We accept the competitive situating of the company will be upgraded given the liberation of the TARP limitations counting compensation limits and potential politicizing of loaning practices,” George said. The reimbursement of TARP is an “obvious positive” and the company ought to advantage from a progressed capital markets environment and contract incomes ought to moreover contribute to a solid moment quarter, the examiner said. Nineteen of the biggest banks experienced the stretch tests, and the Nourished plans to report following week which of the 19 will be allowed to reimburse bailout funds. The Bolstered-on Monday said huge banks trusting to reimburse TARP must appear they can get to open value markets, offer long-term obligation without government backing, cultivate loaning, keep up adequate capital, meet their question of funding and used to support their subsidiaries