Economy Blog

Europe’s banks need to head back out on the fund-raising circuit. They may have to bring in as much as $141 billion, according to Goldman Sachs. Reuters writes that this capital will be necessary “to reach an aggregate Tier I ratio of 9 percent — a level achieved by European banks that have recapitalized recently.” Since the problems that the banks on the continent face are not much different from those in the US, the report begs the question of what will happen in America. The troubles of sub-prime mortgage paper, deteriorating credit, and LBO loans cross borders, and they…
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Original Source: www.247wallst.com