CBA closes out 2008 capital spree
Commonwealth Bank yesterday opted to fall into line with market sentiment, and exploit the extremely liquid position of almost all institutional investors, and sold $2 billion in new shares late in the day.The capital raising replaces a planned sale of $750 million in new shares that Merrill Lynch had half completed and announced only last week.The CBA capital raising takes the amount of new capital sold by big banks over the last two months to $13 billion, and equal to 17 per cent of the capital base of the entire banking sector in Australia at the end of June. In the case of CBA the additional $2 billion (which is on top of $2 billion sold in October to help pay for the forthcoming takeover of BankWest) will raise CBA's tier one capital ratio to 8.5 per cent at the end of December.