Barclays and Royal Bank of Scotland will have to find billions of pounds more capital if they are to continue growing their investment banks under new rules designed to protect against the higher risks of "casino" banking, says The Telegraph.
According to JP Morgan, Barclays will need to find another £12.8bn and RBS £8.5bn to meet new capital rules under a reformed regulatory regime. Officials hope to implement the changes from the end of 2010, though Carla Antunes da Silva, banks analyst at JP Morgan, said the date may be delayed if the economy is not in recovery. She added: "I don't think there will be any new share issuances between now and then." She did not know how the banks would meet capital shortfalls, but did not rule out disposals. She added that HSBC has a £3bn shortfall. Full story...
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