ECB Official Banks Need 100s of Billions of Capital

Discussion in 'Wall St. News' started by S2007S, Sep 13, 2010.

  1. S2007S


    Are they sure about this?

    ECB Official: Banks Need 100s of Billions of Capital
    Reuters | September 13, 2010 | 03:24 AM EDT
    Banks will need hundreds of billions of euros of extra capital following an agreement of tougher capital rules, ECB's Governing Council member and head of the Basel Committee on Banking Supervision Nout Wellink said.

    "I hesitate a bit to mention numbers because it concerns a very long phase-in period that will take about eight years and numbers will change over time. It will be hundreds of billions (of euros)," Wellink told Dutch radio programme NOS Radio 1 Journaal on Monday.

    "Partly they will have to retain profit for years which they cannot use to pay shareholders or bonuses. For another part, this will vary from bank to bank, they will have to get it from the capital market," Wellink said.
  2. buy stocks on this.
  3. Strong buy. Finally, European banks are dealing with the undercapitalization problem.
  4. ammo


    "We will have to get it from the capital market"...thats either the private market or steal from the tax pool...which is it
  5. I wounder how much money DB acctually needs besides the reported amount of 12 billion from the news wires. The likely outcome of the "trillion dollar trench fill" will probably be smoothed out by the World Bank. The EU will try to retain some stabilty, we don't need anymore Greek incidents.

  6. The next bank in Europe ought to be called "Wounded Knee"