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The Editors

Credit Suisse Shows Banks Still Need More Capital

Fragility turns otherwise manageable issues into much bigger problems.

Relatively well capitalized.

Relatively well capitalized.

Photographer: Dan Kitwood/Getty Images

Yet again, trouble at a big European bank, this time Credit Suisse Group AG, is roiling markets. Concerns about the cost of an expected restructuring have sent its share price gyrating wildly, leading both executives and analysts to appeal for calm and emphasize that the bank is among the best capitalized of its peers.

If only that comparison were more reassuring. As the tempest surrounding Credit Suisse demonstrates, the world’s largest banks remain too fragile — a long-running shortcoming that policy makers must address.