Where Will Banks Find Capital?

Bond insurers are in trouble again, and banks will be forced to look for more capital. But the sovereign funds that bailed out investment banks in the winter may have lost their appetite for financials. A recent short-list of potential investors for Washington Mutual was absent of eight sovereign wealth funds the bank approached earlier. Merrill Lynch overcame investor reluctance in its last round of capital raising by agreeing to strict restrictions on subsequent share offerings.

Snapshot asks, as banks face further write-downs and seek to raise capital, will better deals lure sovereign wealth funds back into financials?

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