Citigroup did (finally!) announce the terms of its trust preferred offering: $2 billion (80 million shares), par $25, at a yield of 8.5 percent.
The surprise here is the yield: 8.5 percent, less than the 8.875 percent that traders had been told last night. Demand was much stronger than expected, resulting in a lower yield than initially telegraphed.
This is good news for banks who may also need to raise capital.
Remember, many regional banks like Fifth Third, SunTrust, Zions, and KeyCorp have yet to repay their TARP funds.
Ability to raise capital is key to repayment, which is one reason we have seen these regional banks rise in the last two days.
Financials - More News & Analysis:
The Bears' Take:
The WaMu Mystery:
WaMu shares now:
CNBC Data Pages:
Questions? Comments? email@example.com