What does Bank Recapitalization actually mean?

[walkinwood]

A good primer from Uwe Reinhardt in the ny times:

Uwe E. Reinhardt: What Does 'Recapitalizing Banks' Actually Mean? - NYTimes.com

He explains banks balance sheets and what happened to them in the time leading up to & after the financial crisis, and what it means to recapitalize the banks. This is the first in a series of articles that he says he'll write.

 

[justplainbll]

It means that it can be very painful if not fatal for a bank's current stockholders.

 

[donheff]

How about posting links to the followup articles so we will remember to check them out? Thanks.

 

[clifp]

Great article. So often when I read columnists who opine on financials matters, I think that have no clue about how banks work. Mr. Reinhardt undoubtedly has forgetten more about banking than I'll ever know.

 

[Nords]

So often when I read columnists who opine on financials matters, I think that have no clue about how banks work.

"But... but... but if we don't do whatever it takes to grab market share from our competitors, then we'll go out of [-]bonuses[/-] business!"