Bloomberg Anywhere Login


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Banks May Need $202 Billion Euro-TARP Program, Says JPMorgan

Sept. 26 (Bloomberg) -- Euro zone banks need at least 150 billion euros ($202 billion) of capital provided through a Europe-wide Troubled Asset Relief Program akin to the U.S. plan, according to a report by JPMorgan Cazenove.

France could lead with a capital injection of about 15 billion euros to 20 billion euros for its banks, analysts at JPMorgan led by Kian Abouhossein said in a note to clients today. Societe Generale SA would be one of the “key beneficiaries” if France led the European TARP program, they said. The minimum required to reopen European bank funding market is 112 billion euros, according to the note.

“We assume a Euro TARP rather than specific support only for the most distressed institutions, as we believe a general solution is required to restore general confidence and reopen the funding markets for all institutions,” Abouhossein said in the note.

TARP, a $700 billion program, was started in 2008 to inject capital into banks following the collapse of the U.S. housing market and the bankruptcy of Lehman Brothers Holdings Inc.

JPMorgan estimates the capital requirement would be about 5.5 billion euros for Societe Generale and about 600 million euros for BNP Paribas SA.

“We assume that France would move first independently, given the recent pronounced pressure on its banks funding costs,” the JPMorgan analysts said. “Germany could potentially also act independently.”

Modeling a European financial rescue on TARP “would be a good solution,” Goldman Sachs Group Inc. President Gary D. Cohn said at a panel discussion with other bank executives yesterday.

To contact the reporter on this story: Ambereen Choudhury in London at

To contact the editor responsible for this story: Edward Evans at

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.