Its the fashionable thing - a rights issue.
After weeks of denial, Bradford and Bingley finally admitted that they needed more money to shore up their battered balance sheet. They are looking for £300 million of new money. The news won't make their shareholders happy. The new shares will be discounted at 48 percent of the B&B's Tuesday's closing price.
However, the B&B are not alone. Other banks are lining up with similar offerings. The Royal Bank of Scotland wants £12 billion more, while HBOS is looking to raise £4 billion. Barclays might also follow the growing trend.
Shareholders have only themselves to blame for these losses. When the housing bubble was raging, and banks like the B&B were piling into the buy to let market, shareholders fell asleep. Rather than asking questions about risk, they offered huge bonuses. Now this negligence is being repaid with massive shareholder losses.
The experience will offer some grim but valuable lessons for every shareholder. Control the CEO, make sure you know what she is doing, and above all, don't reward her for excessive risk taking.