Seeking Alpha

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

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.
Comments (6)
  • youngman442002
    , contributor
    Comments (5129) | Send Message
     
    Its called lying where I was brought up...
    25 Nov 2011, 08:40 AM Reply Like
  • BetTheHouse
    , contributor
    Comments (147) | Send Message
     
    OK. Sounds like the solvency problem is solved. Rally on!
    25 Nov 2011, 08:44 AM Reply Like
  • wyostocks
    , contributor
    Comments (8852) | Send Message
     
    Just rate everything AAA with a guaranteed payback in 1000 years and presto---no more problem.
    25 Nov 2011, 08:58 AM Reply Like
  • EMS
    , contributor
    Comments (582) | Send Message
     
    Oh brother. This will end poorly.
    25 Nov 2011, 09:08 AM Reply Like
  • Wurlibuilder
    , contributor
    Comments (14) | Send Message
     
    One more time, twisting the regs, 'cause it worked out so well the last time...
    25 Nov 2011, 10:09 AM Reply Like
  • kunufinance
    , contributor
    Comments (3) | Send Message
     
    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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