Printer Friendly

Goldman says US banks may need USD130bn.

Global Banking News-8 May 2009-Goldman says US banks may need USD130bn(C)2009 ENPublishing - http://www.enpublishing.co.uk

Global Banking News - 08 May 2009(c)2005 - Electronic News Publishing - http://www.enpublishing.co.uk

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.'

[Editorial queries for this story should be sent to gbn@enpublishing.co.uk]

((Distributed via M2 Communications Ltd - http://www.m2.com))
COPYRIGHT 2009 Normans Media Ltd.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2009 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Global Banking News (GBN)
Date:May 8, 2009
Words:158
Previous Article:EBRD to provide loan to UniCredit.
Next Article:Citi to convert more preferred stock to common stock.
Topics:


Related Articles
Goldman Sachs may acquire assets from ailing banks in US.
Moody's warns that it may cut ratings of Morgan Stanley and Goldman Sachs.
Goldman Sachs says Citigroup may not report profit until late 2009.
US banks may need to raise more capital.
Goldman Sachs may sell stake in ICBC.
Goldman Sachs says debt of US banks attractive.
Goldman to pay USD60m to settle sub-prime probe.
US and German bonds may yield less says Goldman Sachs.

Terms of use | Privacy policy | Copyright © 2021 Farlex, Inc. | Feedback | For webmasters