Metro Bank plunges on talk of big fundraising to fix finances

Metro Bank, a British lender, is reportedly exploring options to raise as much as £600 million ($728 million) in debt and equity in order to bolster its finances. This news has caused the bank’s shares to drop more than 25%. The bank’s chair and CEO have been summoned to urgent talks with officials from Britain’s top financial regulators, the Bank of England’s Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA). Metro Bank’s fundraising options could include selling shares to raise over £100 million. The bank has stated that it is evaluating various options and has not made a decision on fundraising plans. However, the decline in the bank’s share price has led some analysts to express doubt about its prospects. Metro Bank has faced multiple setbacks since its launch in 2010 and has had to raise shareholder equity in 2019 due to an accounting error.