Capital by any means: Europe’s banks race out of new year traps

06 Jan 2012

Front-running the 30-odd European banks that have to increase their capital ratios by June, UniCredit revealed terms on its crucial €7.5bn rights issue on Wednesday. But it encountered a torrid reception, revealing just how difficult it will be for banks to secure institutional investor support for bank recapitalisations this year.

Even those not under pressure from the European Banking Authority are moving quickly to consolidate their capital base. However, expectations of a queue of banks lining up to launch their own rights issues after a successful conclusion to the UniCredit deal are wide of the mark.

Instead, most ...

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