/biz/ - Business & Finance

>>54146930
Coben explains how you should do it [4] :

>First, go big. Really big. Bazooka-big. Raise a lot more equity than you need and a lot more equity than regulators tell you to raise. Don’t just fill in the capital hole.

>Second, the stock offering has to be underwritten. Hard-underwritten. Or already subscribed-for. Investors must assess the equity offering on the basis of a repaired balance sheet. They must know you don’t actually need them.

That is, if you go out and announce “hey we’d like to raise $2 billion of equity, anyone interested?” everyone will panic and (1) not buy the stock and (2) withdraw deposits, cause a run, etc. But if you go out and announce “hey we have already raised $5 billion of equity, everything’s cool now,” then everything will in fact be cool.