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April 30, 2008

All Business: Shareholders lose again when banks raise capital

  • Their ownership stakes are shrinking as companies use heavily discounted shares to woo new investors who often see immediate paper profits at existing shareholders' expense.
    • By RACHEL BECK
    AP Business Writer

    NEW YORK — Financial company shareholders must feel like second-class citizens now, given how they are being treated as some banks raise capital.

    It's bad enough that investors in National City Corp. and Washington Mutual have seen their stock holdings plunge in value and dividends crimped because of the huge losses caused by the housing slump and credit crisis.


     
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