JP Morgan Raising Another $5 Billion

Push the financials up and dump more equity on suckers!

Now today (Monday), the Fed comes out with guidelines for the banks that decide they want to exit TARP - the guidelines suggest that they need to raise even more capital. What a joke. How much is enough. The share bases on these financials are going to be insanely high. The earnings will have to be huge to support the valuations. WSJ highlights JP Morgan’s (JPM) capital raise coming up.

The new rules - laid out Monday by the Federal Reserve, and affecting the 19 largest bank-holding companies - appear to be more stringent than what has been required of smaller banks. The announcement came as J.P. Morgan, AmEx and other financial giants prepare to repay some of the hundreds of billions of dollars in taxpayer money they received under the Troubled Asset Relief Program set up at the height of the financial crisis.

The Fed’s announcement sent the two firms scrambling to raise new money from private investors. J.P. Morgan, the nation’s largest bank in terms of stock-market value, said it would sell $5 billion in stock, while credit-card giant AmEx plans to launch a $500 million common-stock offering.

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