Credit is scarce but not capital. Mortgage-ravaged banks and Wall Street firms often have to borrow from the Federal Reserve, as lender of last resort, to meet current bills. They have no problem at all raising big sums from investors for future use.
In recent months, these financial companies have sold $262 billion in new securities-much of it common and preferred stock-according to Bloomberg data. This gives them capital they need to offset losses from subprime mortgages that now total $343 billion.
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