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to recapitalization
noun
A restructuring of a company's mixture of equity and debt
Exact(3)
"Germany is prepared to move to recapitalization," Mrs. Merkel said in Brussels, adding that other European countries should do the same with their banks.
One reason is that since most of these banks have slashed their dividends to pennies, every dollar they earn essentially goes to recapitalization, instead of going out the door to shareholders.
Second, the math of the program now looks a bit odd, at least if the recapitalization funds are going to be restricted to the $250 billion that Treasury has, at this point, committed to recapitalization (as opposed to buying up "toxic assets").
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Stocks fell after Jeroen Dijsselbloem, who heads the Eurogroup of euro zone finance ministers, told Reuters and The Financial Times that when failing banks need rescuing, euro zone officials would turn to the banks' shareholders, bondholders and uninsured depositors to contribute to their recapitalization.
It's the only way GM can get bondholders to agree to a recapitalization, he said.
And most important, Anchor said it would cancel its existing shares and sell the remaining new equity to investors, leading to the recapitalization of the holding company.
In the document, dated July 7, officials write that banks that miss the 5percentt capital pass mark will be given until the end of September at the latest to submit recapitalization plans, with a further three months to implement "private-sector measures".
· Accretion to Earnings and Earnings Growth – The purchase of shares pursuant to the recapitalization plan represents an attractive investment for the company, and the recapitalization plan is expected to be accretive to earnings per share (EPS) by approximately six cents in 2007 and accretive to EPS growth.
In an apparent reversal, the Ambac Financial Group, the second-largest bond insurer in the world, has decided not to split itself into two as part of a $2 billion to $3 billion recapitalization, The Financial Times reported on Tuesday.
Building on this, a single European banking-supervision authority would open the way to direct recapitalization of banks through the European Stability Mechanism, as well as to common deposit insurance and a single resolution framework.
While some analysts have said the stress tests should restore confidence in the sector and lead to a recapitalization of weaker banks, others have said the exact criteria of the sovereign stress needs to be disclosed if the tests are to convince the market.
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