Question-and-Answer Session
Operator
Yes, sir. (Operator Instructions). And your first question comes from the line of Steve Stelmach from FBR Capital Markets. You may proceed.
Steve Stelmach - FBR Capital Markets
Hi, good morning.
John Duffy
Good morning, Steve.
Steve Stelmach - FBR Capital Markets
John, just a couple of quick questions, first on the investment banking side. When you are talking to issuers, what are you looking for in terms of point to trigger and on capital rate, is it simply an issue of, hoping for a better valuation somewhere down the road or do they need sort of more definitive plan from the government, what's sort of low jamming (ph) your mind?
John Duffy
Good question. I think what happened in the fall with the announcement of TARP almost all the issuers kind of went to the sidelines and evaluated whether the capital of systems program made sense for them, obviously, hundreds of them avail themselves to that. And the view I think generally was that that capital was cheaper than they could raise in the public or private markets. So, I think that really in effect for several months put a lot of our discussions with issuers really on hold. I think since the first of the year, discussion levels or discussions have kind of rekindled the valuations though, especially in the regional bank sector, have been hammered pretty hard. And I think there is a period of adjustment here, where some managements are a little struck by whether stocks are trading. And I was in discussion with them about their options. I think at the moment, that is largely the private equity space. Private equity community wants a more senior position than straight common or preference. So there is, in some cases I think there is resistance to that. But I think the longer this environment exists, the more that there will be capitulation on the part of banks or potential issuers that the Government's forcing them to go get that capital and I think the capital out in the public or private markets is maybe more appealing than the terms attached on the latest government plan, so.
Steve Stelmach - FBR Capital Markets
Okay.
John Duffy
I think we're looking at this day by day depending upon who you talk to, there are different attitudes. So, I think as fair to generalize, but clearly the very pressing need for capital isn't going away. It's just a question of how that capital was raised.
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