General Electric came out Wednesday morning to deny rumors of a near-term capital increase.
The size of Deutsche Bank's capital increase is relatively modest compared with what some bankers, analysts and investors think it needs.
Nevertheless, as a botched capital increase last year illustrated, its treatment of those same shareholders can most politely be described as casual.
In October 1989 the group's stake in Maison Bouygues was diluted from 48% to 34% when it did not subscribe for a capital increase.
"The figures will give Deutsche Bank tailwind for selling their shares in the capital increase, " said Dirk Becker, a banking analyst with Kepler Capital Markets in Frankfurt.
The government's National Property Fund, which owned 47% of the bank (and another 3% through an investment fund), inexplicably ducked the capital increase, so its stake was diluted.
In January, he again repeated that the bank had no plans for a capital increase and that it wasn't in the best interest of shareholders, while adding he couldn't rule out any options.
There are no signs of Mediobanca relinquishing its grasp: last month, it announced a capital increase and the sale of some corporate stakes in order to take up its rights in a Generali share issue.
The timing of the capital increase could raise questions because earlier this year, with Deutsche Bank's stock trading at more than 15% above its current levels, executives insisted they had no plans to raise new capital.
Top managers want a capital increase to shore up the balance sheet and have been openly critical of Mr Messier, who in the past has failed to inform them before talking to journalists about his plans.
The capital increase allows Deutsche Bank to act from a position of strength with only modest dilution to shareholders, while putting the bank's ultimate 10% capital-ratio target within reach, the lender said in a slide show for an analyst call scheduled for Tuesday morning.
Over time, excessive capital levels will increase the cost of capital to the banking industry and decrease lending.
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Although banks have enough capital to increase these reserves, doing so would reduce profits, which shareholders would balk at.
Only 21% of CFOs said they expect their cost of capital to increase.
The Inter-American Development Bank (IDB) and the World Bank are finalising their capital-increase plans ahead of their annual meetings in March and April respectively.
In a fast-globalising world even countries with strict capital controls saw an increase in actual capital flows.
One of the uncertainties facing taxation is how much will capital gains tax increase?
You're combining multiple products into single margin calculation in order to increase capital efficiency?
Here's an actual example of how changing a capital structure can increase the value of a business.
When the cost of capital goes up, the return on capital must also increase, or the economy will liquidate itself.
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His playbook: lower rates for individuals and corporations, substantially cut taxes on capital, and increase the personal exemption for dependent children.
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McKinsey reckons that India can double its growth in labour productivity to 8% a year and increase capital productivity by 50%.
The Ssangyong group has pursued an all-out effort to improve Ssangyong Motor's financial structure through a capital-stock increase and the disposal of property.
In the case of Thailand, the opening of an offshore banking center for foreign banks, intended to increase capital inflow, proved far too successful.
And if they have to conserve and increase capital, the chances of dividends resuming in the coming two or three years has diminished very considerably.
More troubling are the banks that are forced by regulators to increase capital ratios by shrinking their balance sheet or in other words, stop making loans.
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When Congress increased the capital gains tax levy in 1986, the so-called experts at the Joint Committee on Taxation estimated that this tax increase would increase capital gains revenues.
The Treasury's answer to him has been: Yes, we'll increase capital (investment) spending but only by making further cuts to current (day-to-day) spending but we won't borrow more.
To elucidate, an instruction to increase capital ratios yet more could have the opposite consequence desired by Sir Mervyn: it could encourage the banks to lend even less.
The head of the bank has been under pressure to revive the struggling bank and increase capital by increasing earnings, selling off non-core business units and cutting costs.
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