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Goldman: European banks could need another $94 billion

LONDON (MarketWatch) — Goldman Sachs said Friday that European banks could need to raise around 60 billion euros ($94 billion) in additional capital, or withhold dividend payments for a year, if recent moves by several banks to strengthen their balance sheets set a new benchmark for capital levels. The broker added that figure could rise to over 90 billion euros if a turn in the European credit cycle triggered losses in line with those seen in the early 1990s. The broker made several rating changes, including downgrading Swedbank , Carnegie and Bankinter to sell from neutral, cutting Banco Santander to neutral from buy on valuation grounds and upgrading Handelsbanken to neutral from sell. Goldman said it’s cut earnings estimates through 2010 for over 40 banks and its forecasts now stand, on average, 12% below consensus.
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Original post by Forextvblog

This entry was posted on Friday, July 4th, 2008 at 3:49 am and is filed under Daily Forex Analysis. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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