European Banks Face Capital Hit From Second-Quarter Bond Selloff
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The bond market selloff in the second quarter probably dented the capital defenses of many European banks, with lenders in Italy and Spain hit hardest.
The extent of the damage will be disclosed when banks report earnings starting this week. It probably won’t be so much as to force lenders to sell shares, analysts at brokerages including Nomura Holdings Inc., Deutsche Bank AG and Citigroup Inc. agreed.