Pimco’s legendary bond investor Bill Gross said during “Street Signs” Thursday that his firm would be staying out of any and all bank offerings for the foreseeable future.
Banks the world over have raised $400 billion in capital, Gross said, and may need to raise much more. The problem, though, as yesterday’s $1.5 billion preferred offering at Wells Fargo showed, is that the institutional buyers are full, leaving only small investors to pick up the slack.
As Gross said, “There’s only so many billion and a half small investor bank capital deals that can be done from this point forward.”
Wells Fargo Executive Vice President and Chief Financial Officer Howard Atkins, in a later interview with Cramer, disputed the claim.
“It was very much an institutional transaction," he said. "I’m not quite sure it’s being characterized as being something different.”
Atkins said that over 100 institutions took part in the offering, adding that it was "successful" and "well oversubscribed."