By Alexis Xydias
July 4 (Bloomberg) -- European banks may need to raise between 60 billion euros ($94 billion) and 90 billion euros to keep their financial ratios at current levels amid a decline in credit markets, according to Goldman Sachs Group Inc.
In a note to investors distributed today a team of London- based analysts cut their recommendations on Carnegie & Co. and Swedbank AB of Sweden to ``sell'' from ``neutral.'' Banco Santander SA, Spain's largest bank, was downgraded to ``neutral'' from ``buy.''
``Regulatory pressures and a sharp turn in the European credit cycle are the two main causes for concern for bank investors,'' the report said. ``If, in addition to regulatory tightening, the sector returns to the early 1990s' level of credit losses, we estimate that the capital shortfall could amount to 90 billion euros.''
To contact the reporter on this story: Alexis Xydias in London at axydias@bloomberg.net.
SaneBull Commodities and Futures
|
|
SaneBull World Market Watch
|
Economic Calendar
Friday, July 4, 2008
Goldman Says European Banks May Need as Much as EU90 Billion
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment