Global Banks May Need $1.5 Trillion in Capital, Study Says

[Joanne98]

Source: Bloomberg

May 25 (Bloomberg) -- Global banks may have a capital deficit of more than $1.5 trillion by the end of next year and some may require state support, according to a study by Independent Credit View, a Swiss rating company.

Allied Irish Banks Plc, Commerzbank AG, Bank of Ireland Plc and Royal Bank of Scotland Group Plc may have the biggest capital deficits by the end of 2011 among the 58 banks examined in the study, Christian Fischer, a partner and banking analyst at Independent Credit View, told journalists in Zurich today.

“Without state aid or debt restructuring these banks will hardly be able to raise capital,” Fischer said, forecasting “massive dilution for existing shareholders.”

The study compared estimated capital needs for the end of 2011 with capital ratios reported at the end of last year. The analysts took into account the banks’ earnings estimates for this year and next, forecasts for loan and provisions growth as well as an increase in the tangible common equity ratio to 10 percent from the average of 9 percent at the end of December.


Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=aHnO_pWL.tRk&pos=3

[Trillo]

1. Time for a reboot? nt

[Demeter]

2. Let Me See...Do I Care?

:nopity:

Guess not. Let them ante up from their CEOs.

[lib2DaBone]

3. Of course they need more money.....and they will keep coming back to the trough

Until Mr. Obama reigns in the Vampire Hedge Funds and outlaws naked Credit default swaps. The destruction will continue.

But (just like single-payer).. it ain't gonna happen.

[Greyhound]

4. K&R #5

[mikelgb]

5. aw fuck, here come the robber barons again...

empty ure pockets

[tranche]

6. These guys are awesome. When they want it they get it and none can stop them.

[unabelladonna]

7. let them eat cake.

i can't say what's really going through my mind, i just can't.

[eppur_se_muova]

8. "Need"? BS. WANT. nt

[Nihil]

9. You've got that right! (n/t)

:grr: