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One last view on MER, I would have much preferred them write the assets down to zero ( as per National Australia Bank NAB). It would certainly put a bottom to their CDO exposure, and eventually they may even have write ups.

Regarding the asset raising, $8.5B - $2.5B ( back to Temasek) - $4.7B to loan to the hedge fund to purchase the CDO's, = $1.8B. The issue price at $22.50 roughly 10% below current market price = a paper shareholder value loss of $3B approx, it doesn't look good, and it certainly won't be the last capital raising.