Shares in European financials have dropped in late trading as the latest European Banking Authority stress tests said the industry must raise €115bn in capital by June 2012.
The tests were met with share price drops after German banks' shortfall was revealed to stand at €13.1bn. The tests also revealed capital shortfalls of €7.3bn at French banks, €15.4bn at Italian banks, and €26.2bn at Spanish institutions, including €13bn at Santander. Santander shares fell just 2% to €5.80, but falls were sharper elsewhere. BNP Paribas fell 5.7% to €31.11, Credit Agricole was down 4.34% at €4.61, Societe Generale fell 4.5% to €19.10 and Dexia was down 8.33% at €0.330. Commerzbank dropped 9.54% to €1.28 after its own capital requirements rose to €5.3bn. In the UK, L...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
