How Are Secondary Investors Faring?

The US government required banks to raise equity capital over the last two months in order to repay their TARP borrowings. The ten banks below were approved today to repay their debts and free themselves of the increased government oversight. By raising equity from the private sector each financial company proved to the government their ability to continue without support.

So far, as shown in the table below, investors committing capital in the companys' secondary offerings have fared well. Capital One investors are the only real losers so far losing over 15% from the offering price. Nearly all other investors have either broken even or seen some nice gains. We will continue to watch the banking sector to assess whether investors were duped or took advantage of a great opportunity. Only time will tell.

Company	Common Equity Issued	% of Market Cap	Price of Offering	June 8th Closing Price	Difference from Offering
State Street	$2B	11.0%	$39.00	$47.41	21.56%
Goldman Sachs	$5B	10.0%	$123.00	$148.35	20.61%
Morgan Stanley	$2.2B	6.8%	$27.44	$31.39	14.40%
Northern Trust	$750M	6.1%	$50.00	$55.38	10.76%
BB&T Corp	$1.5B	13.0%	$20.00	$21.93	9.65%
US Bancorp	$2.5B	7.0%	$18.00	$18.35	1.94%
American Express	$500M	1.6%	$25.25	$25.65	1.58%
JP Morgan	$5B	3.6%	$35.25	$35.39	0.40%
Bank of New York	$1.2B	3.7%	$28.75	$28.54	-0.73%
Capital One	$1.6B	13.0%	$27.75	$23.44	-15.53%