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Subprime fall-out

Capital injection to strengthen balance sheets

By Scheherazade Daneshkhu in Paris

Published: January 21 2009 22:28 | Last updated: January 21 2009 22:28

The French government’s latest €10.5bn ($13.4bn) capital injection offered to six banks is aimed more directly at bolstering the banks’ balance sheets.

This time banks can take preference shares without voting rights, which would count towards “core” tier one capital – a rigorous measure of balance sheet strength that excludes debt such as instruments.

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