Opportunity

As expected, European banks are told to raise capital. But raise capital in this market where even the stronger contenders see share prices at about ½ book value?  Maybe not. Some will simply withdraw, tortoise fashion. If these guys have to backstop capital to 9%, they will do it by shrinking the balance sheet. Goodbye credit.

This reality underpins the act of once again spreading the US (S) and Canada to Germany and others.  We will do just that, next window.


Robert Craven