Top Banks May Need $566B To Meet Capital Rule, Report Says

Law360, New York (May 17, 2012, 1:10 PM EDT) -- Twenty-nine banks deemed systemically important to the global financial system may need to raise $566 billion in common equity to satisfy new capital requirements by 2018, forcing them to restrict dividends or buy back shares, a report released Thursday said.

That number represents a 23 percent increase over the banks’ combined $2.5 trillion in common equity, according to the report released by ratings agency Fitch Inc. While the requirements established by the Basel III banking accords don’t go into effect until 2018, banks will be under...
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