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Stockmarkets initially rallied on the news, and companies rushed to raise money.
Still, when shares in iVillage and About.com were enjoying positive momentum last fall, both companies rushed to raise more cash in secondary offerings.
To calm nerves further, Lehman rushed to raise $4 billion in fresh capital that it did not technically need (and made sure everyone knew it had drawn $11 billion of orders).
Its earnings from investment banking were down from the second quarter, it said, because of the seasonally weak summer months and because the second quarter had been enhanced by underwriting business as other banks had rushed to raise capital.
The I.M.F.'s revisions echo those at other institutions and banks, which have rushed to raise their projections in the light of a faster-than-expected recovery in most of Asia.
While many banks have rushed to raise capital lately, the effort at Citigroup, which has lost nearly $40 billion from the credit crisis, stands out in its scale and diversity.
Similar(51)
Several entrepreneurs pointed to the pitfalls of rushing to raise external financing.
If inflation remains low and unemployment gets down to 6.5 percent, there's no reason to rush to raise interest rates.
Still, Mr. Rogoff acknowledged, "I don't see a big need to rush to raise capital requirements.
The cycle then reverses itself as farmers rush to raise more hogs before feed prices bounce up again.
Remember how Japan snuffed out its recovery in the 1990s by rushing to raise taxes.Japan also put off bank reform.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com