Monday, May 11, 2009
KeyCorp has joined several other banks Monday in announcing public stock offerings. It is among 10 major banks ordered by the government to raise more capital as a buffer against future losses.
The offerings are pressuring financial shares. They also underscore the improving conditions in the capital markets and the increasing demand for bank stocks, which have skyrocketed in the wake of the market's massive two-month rally.
Three banks that have received a clean bill of health from the government — U.S. Bancorp, Capital One Financial Corp. and BB&T Corp. — said proceeds from their common stock offerings would go toward repayment of federal bailout funds received last fall.