WHAT BANKING GIANTS NEED TO DO TO PREVENT ANOTHER LEHMAN LIKE CRISIS

This article by Bloomberg is an interesting read.

The Financial Stability Board (FSB) created in the aftermath of the Global Financial Crisis announced that the most systematically important lenders must have total loss-absorbing capacity equivalent to at least 16% of risk-weighted assets in 2019, rising to 18% in 2022. A leverage ratio requirement will also be imposed, rising from 6% initially to 6.75%.

Pay attention to the statement that including China's 4 major banks, the banking giants of the world need to raise additional 457B Euros to 1.1T Euros. Excluding the big  in China, the amount they need to raise is 107B Euros to 776B Euros. (You can then imagine how much capital the 4 China banks need to raise and appreciate the challenge confronting the Chinese banks).

It is the view of the FSB that 2/3 of the 30 major lenders of the world will need to raise additional capital to meet the new standards.

Link: http://www.bloomberg.com/news/articles/2015-11-09/banking-giants-learn-cost-of-preventing-another-lehman-moment