Write Downs and Capital Raised February 20, 2009

The now famous (within the trading community) WDCI screen from Bloomberg is recreated below as of today.  In an earlier post More Dilution for Equity Holders of Financial Firms in Store? I pondered that based on the older version of this chart that equity holders of financial firms may face more dilution as banks race to shore up their balance sheets by raising new equity.

Of course today one would not call semi or full nationalization dilution, but the effects on share prices have been the same despite the fact that Citigroup and Bank of America have seemed to raise more than enough capital.  When the fed took control of the GSE’s Freddie Mac and Fannie Mae, they essentially wiped out equity holders, which is what the market is pricing in for BAC and C now.  Today Bank of America closed at $3.79 and Citigroup at $1.95.  Combined they are less than a Venit Mocha at Starbucks (with tax in Manhattan).  I stole that from a headline today that noted, sadly, that today The New York Times Company traded lower that the cost of its Sunday edition.

Click for a larger version.

 Writedowns & Credit Losses vs. Capital Raised (Bloomberg: WDCI) February 20, 2009

Writedowns & Credit Losses vs. Capital Raised (Bloomberg: WDCI) February 20, 2009

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