Financial Times FT.com

Investors hit $10bn loss in US financials

By Francesco Guerrera and Ben White in New York

Published: June 15 2008 22:32 | Last updated: June 15 2008 22:32

Investors who backed US financial companies’ drive to raise much-needed capital are sitting on nearly $10bn in paper losses amid a continued slump in the sector’s shares, a Financial Times analysis shows.

The negative returns suffered by investors are likely to make it more difficult and expensive for US financial groups to tap equity markets if, as expected, the credit crunch forces them to raise more capital.

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