Global themes - Banks tighten belts in capital-raising bid

Central bankers and bank CEOs have become increasingly confident that the worst of the financial market crisis is over. JP Morgan's Fed-backed Bear Stearns rescue in March and other measures helped ensure continued functioning of the financial markets, leading to a recovery in banking stocks until early May, with credit spreads shrinking significantly. More recently, though, banking indices in Europe and the US have surrendered their gains as investors have focused on the earnings challenges the banks face. While the mark-to-market write-downs could be over, new business flows are under p...