by Calculated Risk on 1/25/2008 02:54:00 PM

From MarketWatch: Banks may need $143 bln in fresh capital

If bond insurers are downgraded a lot, banks will need as much as $143 billion in fresh capital to absorb the impact, Barclays Capital estimated on Friday.

The Barclays analyst believes that the "regulators and banks will be strongly incentivised to reach a workable solution" and avoid the downgrades.