Rights issues presume that the offering company is actually solvent.

- Jake

If you only spend 20 minutes of the rest of your life on economics, go spend them here.

You forget the point is to protect management. You know, like this...

EurActiv: Merkel embroiled in row over banker's birthday party (27 August 2009)

A month ahead of national elections, German Chancellor Angela Merkel stands accused by the opposition and the media of having spent public money celebrating the birthday of a banker friend.

Deutsche Bank Chief Executive Josef Ackermann revealed in a TV talk show that Merkel had asked him to invite 30 friends to celebrate his 60th birthday at the chancellery a month ago.

...

Merkel was prompt to react, and in another television appearance explained that part of her job as chancellor was to bring together public personalities. She insisted that the event "was not a birthday party," but a dinner of schnitzel and cold asparagus for people prominent in business, culture, science and education, including Mr. Ackermann.

A month before August 2009? Then there must have been more than one birthday bash for Ackermann at Merkel's expense...

Deutsche Welle: Deutsche Bank boss throws party, Merkel foots the bill (27.08.2009)

Reports say German taxpayers covered expenses of lavish birthday dinner for Deutsche Bank chief Josef Ackermann. The meal was held in Chancellor Angela Merkel's office.

...

In April 2008, Deutsche Bank chief Josef Ackermann invited about 30 guests from home and abroad to the German chancellor's office where he hosted a belated dinner to celebrate his 60th birthday in February.

Mysteriously, back in 2008 Spiegel was reporting less than positive relation between Merkel and her favourite banker: Deutsche Bank CEO Under Fire (10/29/2008)

German Chancellor Angela Merkel had invited an illustrious group of guests to the Chancellery to honor a man from the business world whom she especially admires: Josef Ackermann, the CEO of Deutsche Bank.

...

At the time, in February of this year, the chancellor's relationship with her favorite banker was still in good shape. The dinner in Berlin was Merkel's way of thanking Ackermann for having invited her to his 60th birthday celebration, which she was unable to attend due to scheduling conflicts.

Wait, there was another birthday dinner in February 2008?

Today Ackermann is the bogeyman in Berlin, across all political party lines. The reason for his fall from grace can be summed up in a single sentence: "I would be ashamed if we were to accept government money in this crisis."

Unless your bank was brought down by the PIGS through no fault of your own, right, Josef?

By laying out pros and cons we risk inducing people to join the debate, and losing control of a process that only we fully understand. - Alan Greenspan