Seeking Alpha

The world's 29 largest banks will need to raise an extra $566B in new capital by 2018 to meet...

The world's 29 largest banks will need to raise an extra $566B in new capital by 2018 to meet tougher Basel III standards, according to a Fitch study. The extra capital would be a 23% increase on what banks held at the end of 2011, or roughly equivalent to three times their combined annual earnings. U.S. banks will be hit particularly hard by the relative capital requirements for risky activities.
Comments (5)
  • fourchan
    , contributor
    Comments (80) | Send Message
     
    they will just tap the us taxpayer at treasury rates with their free money from the fed. problem solved.
    17 May 2012, 05:09 AM Reply Like
  • bbro
    , contributor
    Comments (9323) | Send Message
     
    Does Fitch say how much capital will be generated organically or
    do they just want to scare people?? Does Fitch say the banks will generate 1.5 or 1.6 or what
    trillion in earnings over this period???
    17 May 2012, 05:14 AM Reply Like
  • 7footMoose
    , contributor
    Comments (2266) | Send Message
     
    This calculation is all over the place. Just a few weeks ago the US Banks were deemed to be in good shape vis a vis Basel III. Now this is a problem "looming" out five plus years. Has Fitch hired the Amazing Kreskin?
    17 May 2012, 05:18 AM Reply Like
  • User 353732
    , contributor
    Comments (4787) | Send Message
     
    This merely means that bad governments will continue to use bad money to provide limitless free credit to bad banks so they can manufacture all the "earnings" and "assets" they need.
    Government of the kleptocrats, by the plutocrats and for the oligarchs shall not perish in the West........
    17 May 2012, 05:44 AM Reply Like
  • davidingeorgia
    , contributor
    Comments (2713) | Send Message
     
    The most surprising thing to me is that anyone still bothers listening to anything Fitch (or any of the other ratings agencies) says. Fitch might do better work if Kreskin was in charge.
    17 May 2012, 05:47 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|