It will put some of the company's vast pool of excess capital to more productive work.
Corporations remain in top shape in terms of balance sheet liquidity and excess capital.
Value investors like Einhorn are known for wanting companies to return any excess capital to shareholders.
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In 2009 they will be more circumspect, but will still be eager to put their excess capital to work.
Now that sales of with-profits policies have dwindled, however, regulators are pushing insurance companies to unload their excess capital.
The managers surmised that if all future earnings were excess capital, AIG would be able to repurchase 14% of its shares.
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In summary, it seems this excess capital will enter the economy.
If there is any drop in oil prices the prices of commodities will shoot up as the excess capital runs dry and state subsidies are cut.
The more efficient and effective approach is to allow profitable companies to return excess capital to their shareholders without subjecting those dividends to discriminatory tax treatment.
Citigroup has said it expects to begin returning more capital in 2012, with dividends and buybacks ramping up significantly in 2013 as more excess capital is generated.
Banks would have a greater incentive with higher rates and gain some comfort in lending more which would stimulate the flow of liquidity sitting as excess capital in banks today.
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Chicago Tribune terminator Sam Zell added to the weirdness with a strange video that expressed nothing so much as the frivolous uses to which excess capital can be put.
Sovereign wealth funds and countries like China who export a lot more than they import and need a place to stash their excess capital have likewise been glad to lend me some cash.
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Goldman Sachs directly decided it would find more profitable ways to deploy its excess capital than dividend hikes, one of which included buying back its shares owned by the Oracle of Omaha, Warren Buffett.
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Dodd, who helped shepherd the bill through the Senate, says the companies are "fundamentally sound and strong, " noting that they hold excess capital and that their portfolios are primarily made up of healthy, 30-year fixed-rate loans.
Third was a ruthless focus on profits in excess of capital costs within the foreseeable future as the success criteria for proposed investments of time or money.
Adding the Lucasfilm IP to our existing Disney, Pixar and Marvel IP clearly enhances our ability to serve consumers, strengthening our competitive position -- and we are confident we can earn a return on invested capital well in excess of our cost of capital.
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Certainly, Asia's emphasis on work and economic development leaves little excess energy and capital to spread artistic achievement.
Finally, in the event that your new investments skyrocket in value (in excess of your capital losses), you will have to wait a year to sell or be stuck with higher-taxed short-term capital gains next year. (You should be so lucky).
Similarly, long-term capital losses are first applied against long-term capital gains, with any excess applied against short-term capital gains.
When it comes to new healthcare services ventures, the law punishes excess return on invested capital.
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The expectation is that once both companies get their capital requirements squared away they will have lots of excess earnings to deploy elsewhere-and returning capital to shareholders would be at the top of the list.
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According to Pivot Capital, Chinese excess capacity in cement is greater than the combined consumption by the US, Japan, and India combined.
JPMorgan Chase, Goldman Sachs, Morgan Stanley, Citigroup and Bank of America all have Tier 1 capital levels well in excess of the new hurdle.
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If, as a result of capital inflows, there is an excess supply of foreign currency, the central bank must buy it and sell yuan to keep the exchange rate stable.
The strongest argument for a revaluation now is not that the yuan is undervalued, but that an adjustment would halt speculative capital inflows and so mop up the excess liquidity.
Smith, by the way, thought that this was great: it meant that the investment markets actually moved capital swiftly to those areas where there were excess profits.
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In order to support high levels of wholesale funding, UBS says, banks may need to demonstrate levels of core Tier one capital, which is effectively common equity, well in excess of the levels most Eurozone banks currently hold.
There is not much to do about this except to make more capital available, through a much higher savings rate preferably in excess of 10%.
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The goal is to establish a pre-qualified pool of private sector partners positioned to finance development of large scale renewable energy projects and re-coup their capital investment through the sale of energy to the Army, and excess energy back to the grid.
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