As any banker knows, capital is crucial. Sufficient capital is needed for a bank's growth; to withstand losses on loans, lack of earnings, and downturns in the economy; and, of course, to keep the regulators happy. There are many ways a bank can raise capital, including selling stock and issuing debt. If the bank is part of a holding company, which most banks are, it is the holding company that raises the capital and downstreams it to its subsidiary bank. The holding company, thus, might sell its stock, issue debt such as subordinated debt, or borrow funds through a standard holding company loan. Typically when a holding company sells its stock, it does so through exemptions from registration under state and federal securities laws. But sometimes the management considers a public sale of its stock — i.e., going public. This article focuses briefly on the advantages and disadvantages of going public. Continue reading >