US banks are looking to capitalize on strong Q-1 results and the end of the government “stress tests” to raise capital and rebuild investor confidence in the battered sector. Goldman Sachs is finalizing a plan to raise billions of dollars in the capital markets, a step that could pave the way for it to repay US$10B in government cash Successfully raising the funds could satisfy what has become an unofficial condition of being allowed to repay government loans, as government officials have told banks that they also need to demonstrate that they have solid investor support. Goldman had around UD$111B of cash and cash-equivalent securities in December 2008 The plans to repay the bail out money soon may be threatening to banks still in need of help, a list that could include Citigroup or Bank of America, as it would draw a distinct line between healthy and unhealthy institutions.
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April 17th, 2009 at 5:01 am
What about Harley Davidson (HOG) accounting? Just like the auto’s, book a profit after mfg, before the sale? It looks like after shipping out the bikes, HOG books a profit on the mfg of the bike and books a receivable from the dealer with no cash changing hands. Are receivables growing amid sales decline? Thank you.