James Moore: Crisis? What crisis? Banks wave away calls to raise cash
Outlook So Europe's banks need to raise €106bn (£93bn), which was the final number to come out of the "phew they've actually done it" crisis meeting on the Continent's sovereign debt crisis.
If you believe the European Banking Authority, banks in Spain require €26bn to get to the required capital levels. That's quite a chunk by any measure. And yet on the very same day Santander airily dismissed any concerns about a cash call, claiming it could meet the requirements without raising capital or cutting its dividend. (Deutsche Bank and Commerzbank have said much the same. German banks need €5.2bn.)
A number of analysts have, naturally, suggested otherwise. Of course, analysts aren't always right. There were some in Britain who said that the likes of HBSC, Barclays and RBS would need to raise money, but the EBA has said British banks don't need a penny. Score one for the FSA/Bank of England.
As for the EBA, the analysts and the case of Santander (and of Commerzbank and of Deutsche), it may be that some people have got their figures wrong. And it may be that by some miracle everything is indeed rosy and all the requirements can be met by retained profits. And it may be that we'll see one or two cash calls which aren't categorised as such over the next few months. Things like quietly disposing of businesses here and there, or partially floating them off.
That's the way things go in the wonderful world of banking. And they wonder why no one trusts them any more. If I were investing now I'd be looking to buy shares in people who make beds. There'll probably be plenty of demand for new ones with a space under which people can stash their money.
Simon Calder looks at communities fighting back against the poachers
Guide dog mauled while helping owner deliver Christmas cards
Chemical and radiation experts investigate after death of man found inside tent in field
Nelson Mandela’s complex bond with Britain
The poorest pay the price for austerity: Workers face biggest fall in living standards since Victorian era
10 stone five-year-old taken into care
- 1 Turning up the voice of America
- 2 The poorest pay the price for austerity: Workers face biggest fall in living standards since Victorian era
- 3 The man who made Femen: New film outs Victor Svyatski as the mastermind behind the protest group and its breast-baring stunts
- 4 An obsessive’s documenting of Israeli war crimes in Lebanon can show us how the West lost respect for international law
- 5 Mass murder in the Middle East is funded by our friends the Saudis
- < Previous
- Next >
iJobs Money & Business
£42000 - £46500 per annum + Benefits: Pro-Recruitment Group: Big 4 Opportunity...
£300 - £350 per day: Harrington Starr: SQL Server MI Developer needed for Euro...
£25000 - £50000 per annum + Benefits + Bonus: Harrington Starr: C++ Server Dev...
£300 - £350 per day: Harrington Starr: Leading Electronic Trading Software Ven...