Bloomberg News

Deutsche Bank, BNP Among Banks Facing G-20 Capital Buffer

November 04, 2011

(Updates FSB comment in sixth paragraph.)

Nov. 4 (Bloomberg) -- Deutsche Bank AG, Commerzbank AG and four French lenders are among 29 banks facing additional capital buffers ranging from 1 and 2.5 percentage points under plans approved today by the Group of 20 nations, leaders said.

Regulators agreed on the measures, which some banks have warned could harm chances for a global economic recovery, to prevent any so-called systemically important firm from failing and causing a freeze of interbank lending such as the one that followed the bankruptcy of Lehman Brothers Holdings Inc.

French lenders on the list include BNP Paribas SA, Credit Agricole SA and Societe Generale SA, Nicolas Sarkozy, France’s president, said at the conclusion of a summit of G-20 leaders in Cannes, France. The German lenders on the list were identified by the country’s Chancellor Angela Merkel.

Bank watchdogs have clashed with some lenders including HSBC Holdings Plc, Citigroup Inc. and BNP over the plans, with the banks warning that they could force them to cut lending or support to international trade.

The surcharge plans were published in tandem with other measures to protect taxpayers from having to bail-out failing banks. These include writing down bank’s unsecured creditors, the Financial Stability Board, which drew up the measures, said in statement.

Regulators will “allocate losses to shareholders and unsecured and uninsured creditors in their order of seniority,” the FSB said.

--Editors: Christopher Scinta, Anthony Aarons

To contact the reporters on this story: Jim Brunsden in Basel at jbrunsden@bloomberg.net;

To contact the editor responsible for this story: Anthony Aarons at aaarons@bloomberg.net.


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