Remember when the IMF said Europe will need $200 billion to recap itself, only for the DSK successor to promptly reneg on what she said after Europe shrieked with terror that someone in power dared to tell the truth (as opposed to marginal fringe blogs), or remember when Goldman said the real bottom line will be more like $1 trillion? We can now add FAZ and the DIW to the list of unpatriotic organizations who dare to tell the truth. From Frankfurter Allgemeine by way of Reuters: "Germany's 10 biggest banks need 127 billion euros ($175 billion) of additional capital, German newspaper Frankfurt Allgemeine Sonntagszeitung reported, citing a study by economic research institute DIW. The paper on Sunday cited Dorothea Schaefer, research director for financial markets at DIW, as saying the ratio of banks' equity capital to balance sheet total needs to rise to at least 5 percent. A source said this month that the International Monetary Fund has estimated European banks overall could face a capital shortfall of 200 billion euros." That's ok: when the pirates take charge in a few months we are certain the creditors will promptly relinquish all claims against debtor banks, or else walking the plank will become a distinct possibility.
Full FAZ article here.