Wednesday 13 October 2010
More Bank capital raising
This in turn has caused a fall in the shareprice of Barclays Bank - rumours in the City suggest that Mr Diamond's toy needs about £8 billion to meet the Basle III requirements.
Lloyds has a pretty bullet proof balance sheet and RBS, well RBS does not really but then is a state entity. What becomes of the bank if it needs to raise new capital is very bad news for shareholders, already down to only 17% ownership.
making banks safer by forcing them hold more money is a good thing; extra good is that it seems the capital markets are now strong enough to digest a new funding round. It is a very good sign of a turn in the Credit Crunch that markets can do this...if only they could do it without Government intervention at all.