Financial Times FT.com

US smaller banks under funding pressure

By Ben White in New York

Published: April 27 2008 19:12 | Last updated: April 27 2008 19:12

Large US and European banks are raising so much capital to offset writedowns and loan losses that smaller institutions in the US may find it difficult to tap investors for the funds they need to survive, industry experts say.

This could trigger failures among smaller US banks, of the type predicted recently by the federal Office of the Comptroller of the Currency.

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