Two Big Banks Explore New Equity
April 10, 2009 by Tisa Silver
Filed under Finance
Today, reports surfaced that both Goldman Sachs and Sumitomo Mitsui Financial Group are exploring multi-billion dollar equity issues in the near future.
Photo by MShades. courtesy of flickr
According to the Wall Street Journal, Goldman is contemplating the new equity issue as a means to repay a $10 billion government loan.
No details were provided as to how many billions Goldman would attempt to raise.
According to MarketWatch, Sumitomo Mitsui is reportedly seeking $8 billion (800 billion yen) from their new issue. Sumitomo obviously needs cash after releasing some dismal earnings news today.
As recently as January the Japanese bank was forecasting a profit, but now it reportedly expects a $3.9 billion loss for the fiscal year ended March 31, 2009 versus a $4.65 billion profit for the year prior.
Shares of Sumitomo Mitsui (Ticker: SMFJ.Y) fell 16 percent.
News of Goldman’s new stock exploration was released on Good Friday. Since markets are closed today that should give investors some time to ponder the news and anticipate the details.
Shares of Goldman Sachs (Ticker: GS) closed up 8 percent heading into the holiday weekend.
