Wednesday, May 27, 2009
Pittsburgh based PNC Financial Services says it has met the demands of the US Treasury Department following its so-called “stress test.” PNC was asked to raise $600 million in common equity. PNC CEO James Rohr says, "I am pleased that were we able to raise the required $600 million… at market prices and in a relatively short time frame." The Treasury Dept. had given PNC and other financial institutions 6 months to raise the equity. The company issued 15 million shares of common stock through an "at the market" offering. PNC launched that offering May 14. Rohr says, “PNC expects to continue to increase its common equity as a proportion of total capital through growth in retained earnings and will consider other capital opportunities as appropriate.” The company says it has no plans to convert $7.6 billion in preferred shares held by the U.S. Treasury Department into common stock.