Financial Times FT.com

Subprime fall-out

Regional US banks in fears of cash calls

By Saskia Scholtes in New York

Published: July 20 2008 20:47 | Last updated: July 20 2008 20:47

US regional banks will draw scrutiny during earnings season this week amid fears that losses on home equity and residential construction loans may force some to raise fresh capital or put themselves up for sale in turbulent markets.

Shares of regional lenders have come under heavy pressure on fears about the ability of smaller institutions to ride out the turmoil in the banking sector.

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