Banks will try and raise capital ratios by deleveraging, not raising fresh capital

That’s a quote from an interview with Nomura economist Richard Koo in which he says the new Credit Crunch is soon to be upon us. As a friend of mine just said, the reasoning behind these bank’s decisions not to try and raise fresh capital is purely and simply because it would impact on their end-of-year bonuses. It’s certainly a sad world we live in.