Tag Archives: John Foley

Reuters – John Foley – China’s Bad Debt Could Leave $500 Bln Equity Hole – 4 September 2013

ReutersThe author is a Reuters Breakingviews columnist. The opinions expressed are his own.

China’s bad debts could blow a $500 billion hole in bank balance sheets. That’s roughly how much extra equity the eleven biggest lenders might need if 10 percent of their loans went sour, according to a Breakingviews calculator. Though the chairman of ICBC, China’s biggest lender, thinks dismal bank valuations are “unfair”, the malaise is well deserved. Continue reading