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A new study suggests European banks will need to raise nearly €200B in new capital, or cut...

  • Thursday, December 15, 2011, 3:20 AM ET
    A new study suggests European banks will need to raise nearly €200B in new capital, or cut their balance sheets by nearly 20%, in order to meet Basel III requirements that start taking effect in 2013. With credit markets increasingly tight, this will be no small feat. (U.S. and Asia banks face a collective shortfall of less than €70B.)
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This news story has 3 comments:

  •  
    Euro banks have more flexibility than imagined through bonus reductions which would not be acceptable in US. Also asset sales. In the end, they will all need some state aid (ala TARP) but not as much as many think.
    15 Dec 2011, 07:24 AM Reply Like
  •  
    That may hold true with the "current" balance sheets from Euro banks, which are far more shady than those of most US Banks, without proper oversight Euro banks will fudge their way through this bailout, and in 2 years, face it again when the offbook debt hits the fan.

    We have recently proposed new policy measures to crack down on this very issue, and are meeting with great resistance regards mandatory enforcement of IFRS 9. It's been pushed back again.

    See here: http://bit.ly/vFFEYF
    15 Dec 2011, 07:44 AM Reply Like
  •  
    Forgot this as well:

    http://bit.ly/uX4QW7
    15 Dec 2011, 07:51 AM Reply Like
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