Friday, January 25, 2008

Barclays: Banks may need $143B in Capital if Insurers Downgraded

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.