Wednesday, February 17, 2010

Bank Reform May Have $220 Bln Capital Hit -

First the news:

Bank Reform May Have $220 Bln Capital Hit -
"Top banks will need an extra $221 billion (139.6 billion pounds) of capital and see annual profits slump by $110 billion if all proposed regulations to reform the industry are brought in, leading analysts said on Wednesday.

If all the initiatives from regulators are implemented it would cut the average return on equity to 5.4 percent from 13.3 percent next year, hurt economic growth and raise costs for bank services, JPMorgan analysts warned"

Now that said, I owuld have to imagine the bank analysts might be a tad biased in this one.

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