Six months after issuing billions of euros of new stock to investors and raising hopes that the European banking sector was on the mend, three big lenders have been hit by a fresh wave of problems.
Germany's Commerzbank AG and Italy's Banca Monte dei Paschi di Siena SpA are scrambling to come up with billions of euros in new capital to comply with European regulations, raising the prospect that they might need to go back to their beleaguered investors—or taxpayers—for fresh rounds of aid.
Spain's Bankia SA, meanwhile, is facing a possible merger with a stronger rival as part of the government's plan to deep-clean its banking sector.
The travails of the three banks, coming so soon after they tapped the markets for capital, are likely to make investors even more reluctant to put money into cash-strapped European lenders, analysts and investors say.
Thirty-one European banks need to submit plans to their regulators on Friday about how they intend to come up with a total of €115 billion in capital by June. So far, only one, Italy's UniCredit SpA, has announced plans to raise capital by selling new shares.
read more: Olympus Wealth Management
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