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.
- 1 Finland schools: Subjects scrapped and replaced with 'topics' as country reforms its education system
- 2 The West has it totally wrong on Lee Kuan Yew
- 3 #FreeTheNipple: Women in Iceland bare breasts in solidarity with trolled student
- 4 Scientists have discovered a simple way to cook rice that dramatically cuts the calories
- 5 Zayn Malik quits One Direction: Hundreds of workers request compassionate leave following band member's exit
Germanwings captain Patrick Sondenheimer tried to break into locked cockpit door 'with an axe' as plane was descending
Amanda Knox murder conviction: Italian court overturns verdict for US student and Raffaele Sollecito in the killing of Meredith Kercher
Saudi Arabia says it won't rule out building nuclear weapons
The battle for the Middle East's future begins in Yemen as Saudi Arabia jumps into the abyss
#FreeTheNipple: Women in Iceland bare breasts in solidarity with trolled student
Nigel Farage brands LGBT activists 'filth' and 'scum' and accuses them of scaring away his children after they invade his local pub
Ukip supporters are 55 or older, white and socially conservative, finds British Social Attitudes Report
JK Rowling responds to fan tweeting she 'can't see' Dumbledore being gay
Russia threatens Denmark with nuclear weapons if it tries to join Nato defence shield
Jeremy Clarkson sacked live: Alan Yentob 'wouldn't rule out' ex Top Gear host's BBC return
Germanwings plane crash live: Co-pilot Andreas Lubitz wanted to 'do something people would remember him for'
iJobs Money & Business
Negotiable: Recruitment Genius: To provide a prompt, friendly and efficient se...
Negotiable: Recruitment Genius: You will be the first point of contact for all...
£18000 - £24000 per annum + benefits: Ashdown Group: HR, Payroll & Benefits Of...
£35000 - £38000 per annum + benefits : Ashdown Group: A highly successful, int...