Designing an Optimal Capital Structure
By Thomas W. Killian, Principal, Investment Banking Group of Sandler O’Neill & Partners, L.P.
There have been a number of developments in the past few years that have dramatically changed the framework for evaluating capital structure alternatives for insured depository institutions of all sizes in the U.S. Among these developments, the proposed implementation of Basel II may have the greatest impact as it will allow large, internationally active banks to significantly reduce the risk-weighting of their assets and, correspondingly, the capital they must hold to support such assets. More >