Tuesday, February 26, 2008

the upcoming visa ipo is good news for some major banks

the upcoming visa ipo has got plenty of individual investors excited, as well it should, but it could also prove to be a catalyst for some major banks' stock prices. large visa stock holders include jpm - with a nearly 23% stake - c and bac. the proceeds from a visa ipo would bring these banks capital at a crucial time. the new capital could help strengthen the banks' balance sheets - if needed - and reduce or eliminate further equity sales to shore up capital later. and if the ipo is as successful as ma, the major bank shareholders could gain a further windfall from the future sale of visa shares.

long c, bac and jpm

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