From Mr Peter Montagnon.

Sir, Investors would take issue with the claim in your editorial "The rights issue" (June 4) that rights issues are inappropriate to the needs of struggling banks. Pre-emption rights are an efficient and cost-effective way of raising capital, which involve much lower total fees than those charged by US banks for placements in their market. Because the process protects investors from dilution, it adds to confidence and reduces the cost of capital.