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Goldman says US banks may need USD130bn.

Global Banking News-8 May 2009-Goldman says US banks may need USD130bn(C)2009 ENPublishing -

Global Banking News - 08 May 2009(c)2005 - Electronic News Publishing -

Goldman Sachs (NYSE: GS) has opined that US banks may need about USD130bn in capital this year.

The funds would be needed by weaker banks to fill shortfalls, and the stronger ones would require capital to repay the government's rescue funds. Analysts at the bank said that weaker banks may require USD100bn, while the stronger ones would require about USD30bn.

Analysts at the bank said, 'Investors are now looking to diluted, normalized, and discounted earnings with the assumption that stress test induced capital raises are both successful and credible and therefore banks will be able to absorb the losses to come.'

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Publication:Global Banking News (GBN)
Date:May 8, 2009
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