Morning Roundup: Banks’ Capital Shortfalls

  • The big banks are not sufficiently capitalized to meet the new Basel III requirements, according to the Bank for International Settlements. The shortfall could be as large as $762.85 billion. [WSJ]
  • If Basel III had been put in place for the end of 2010, banks would have faced a bill of $797 billion. Fortunately they have until 2019 to get their affairs sorted. [Bloomberg]
  • Apparently readers haven’t been able to get enough of Bloomberg LP’s bylined opinion pieces — gems like “Liberal Foes of Tax Plan Threaten Middle Class” or “Man Up When It’s Time for Your Junk Pat down.” The media company plans to start running editorials under the banner “Bloomberg View.” [NYT]
  • Morgan Sze, the high-powered head of the biggest Goldman Sachs proprietary trading desk, is starting his own hedge fund. It will be called Azentus Capital and will run out of Hong Kong. [FT]
  • Big-dog investors like Paulson & Co. and Calpers, who lent Lehman Brothers money before its historic 2008 bankruptcy, have objected to Lehman’s proposed method of paying back its collossal debts. [Reuters]

mtaylor [at] observer.com | @mbrookstaylor

Morning Roundup: Banks’ Capital Shortfalls