"We expect the EU to come up with a minimum core tier I (capital) level under certain stress scenarios and a higher one without any stress. Then banks will be asked to reach this level in a short period of time," said a senior banker in Germany.
Banks were not involved in talks yet with governments on likely capital needs, several bankers said, although options were being considered in case they need to act quickly.
But they were concerned at just how much more capital they will be called on to find. British Prime Minister David Cameron urged his euro zone peers on Monday to adopt a "big bazooka" approach to the crisis.
"If capital is to have any chance of stabilising the banks, it will need to be large: we would start with the IMF's 200 billion euros," said Alastair Ryan, analyst at UBS. This could see the euro zone governments owning 40 percent of the sector if such a sum was to come from the state, he estimated.
http://uk.reuters.com/article/2011/10/10/uk-dexia-idUKTRE7966K720111010
Monday, 10 October 2011
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