Thursday, May 17, 2012

Banks need more capital, ratings agency says

Welcome to the morning roundup. Here's a look at today's banking and finance news.

Bank capital. The world's biggest banks must raise a combined $566 billion to satisfy new capital requirements, according to Fitch Ratings, the New York Times reports. To meet their deadline, banks will likely cut shareholder dividends and take other measures to bolster capital, Fitch said.

London Whale. The Wall Street Journal takes a closer look at Bruno Iksil, the JPMorgan Chase & Co. trader who became known as the "London whale." He was known to pursue trades rivals thought were overly aggressive but often won big profits.

Investors worry. Financial advisers have been flooded with calls from concerned clients after JPMorgan revealed its $2 billion trading loss, Reuters writes. And they're not only worried about their shares - they also have questions about broader bank risk.

Stocks fall. U.S. stocks dipped this morning as investors worried about economic indicators and a possible downgrade of Spanish banks, Bloomberg reports.