Shareholders fear dilution from offerings to repay TARP

A few big regional banks have yet to repay money they received through the Troubled Asset Relief Program. PNC Financial Services Group announced a public offering related to repaying TARP funds that could leave it with a highly desirable Tier 1 capital ratio of 8%. Regional-bank shareholders are worried that if other banks take that approach, stock offerings will leave them with highly diluted shares.

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