Goldman sinks banks despite positive UBS …

UBS said today morning, that they need no fresh capital … and this was seen positive
Sometimes I can’t believe it … Remember … the UBS capital increase was only weeks old

Then Goldman put out a study on European Banks … telling (at least part of) the truth.

They need more MONEY … up to 90bln EURO

Do I hear MONOLINE EXPOSURE … ???

Among other things?

That would mean … We are 50% through the wood

Here some quotes …
- European banks may need to raise as much as 90 billion euros ($141 billion) to restore their capital after the U.S. subprime mortgage collapse caused credit markets to seize up, according to Goldman Sachs Group Inc.

- European banks have already raised $115 billion from investors to replenish capital after reporting $134 billion in writedowns, Goldman analysts led by Christoffer Malmer said in a note to clients today.

- They may now seek more than 60 billion euros to increase their Tier 1 capital, a measure of financial strength, to about 9 percent, the analysts said. They could need to raise as much as 90 billion euros were credit losses to rise to levels last seen in the recession of the early 1990s.

- The European banks Goldman tracks have lost $900 billion of their market value since the credit crisis began last year. Anshu Jain, head of global markets at Deutsche Bank AG, said this week that that contagion is “by no means over,” and Europe’s banks have lagged behind the U.S. in raising money from investors.

- Goldman’s analysts said in their report that “access to liquidity, capital adequacy and post-crisis profitability are the key areas of near to medium-term uncertainty” for European banks.

So NO holiday related bounce

Stay tuned … next week could be cruel …

Tags: bond insurers, financials, Goldman, UBS

This entry was posted on Freitag, Juli 4th, 2008 at 13:51 and is filed under FDAX. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.