>CAVEAT EMPTOR: CAPITAL RULES AND DELEVERAGING CAN MAKE "BARGAIN" BANKS EXPENSIVE

The stress test of the European Banking Authority last year led to the conclusion that numerous banks, including major listed banks, would need additional capital to support the continuation of existing activities. Official estimates started low, but eventually converged on over 100 billion euros for the banks; even these numbers seem low compared to the real needs if banks were to maintain their former book of business, as enumerated in my earlier study. The numbers seemed much larger that what the markets or the banks' home countries could provide and the price of bank stocks tanked at the end of 2011.


To read paper in detail: CAVEAT EMPTOR
RISH TRADER