US banks need to raise capital

Fri, 16 May 2008 09:40
Janice Du Preez

US Federal Reserve Chairman, Ben Bernanke yesterday urged banks to hold more generous capital cushions and encouraged them to proactively increase their capital-raising efforts.

He says by raising capital, the banks will help the broader economy and expose firms to new profit opportunities as the economy improves. Bernanke did, however, note that a complete return to normal markets was still some time away.