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Likely unable to raise capital the old-fashioned way - issuing shares and shedding assets -...

  • Friday, November 25, 2011, 8:34 AM ET
    Likely unable to raise capital the old-fashioned way - issuing shares and shedding assets - European banks are set to indulge in some fancy footwork. Known as "R.W.A. optimization," the process involves altering the risk-weighting on existing assets to allow less capital to be held against them.
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This news story has 6 comments:

  • Its called lying where I was brought up...
    25 Nov 2011, 08:40 AM Reply Like
  • OK. Sounds like the solvency problem is solved. Rally on!
    25 Nov 2011, 08:44 AM Reply Like
  • Just rate everything AAA with a guaranteed payback in 1000 years and presto---no more problem.
    25 Nov 2011, 08:58 AM Reply Like
  • Oh brother. This will end poorly.
    25 Nov 2011, 09:08 AM Reply Like
  • One more time, twisting the regs, 'cause it worked out so well the last time...
    25 Nov 2011, 10:09 AM Reply Like
  • This isn't a surprise - CFOs of leading European Banks have openly said that their banks will pursue these "financial management" tactics in order to address the newly added requirements incoming from Basel 2.5/3.0. Nothing new here...
    25 Nov 2011, 10:24 AM Reply Like
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