2008-04-28ft.com

Large US and European banks are raising so much capital to offset writedowns and loan losses that smaller institutions in the US may find it difficult to tap investors for the funds they need to survive, industry experts say.

As we've said before -- this is a shrinking pie, and if the big banks are going to be "bailed out" by cash infusions, someone else is going to lose. Among those losers are likely to be smaller banks. Unfortunately this bodes poorly for future concentration of risk.



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