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But until you send the right signal about the cost of capital, problems will remain".
And France's AXA had to deny it had capital problems, after its shares dropped on rumours about its equity losses.In this section Promoting the noble cause of commerce Tough new world Hard hit Mission impossible Know your customer One into four As you were Managing the world economy ReprintsAn overreaction?
The evident capital problems of European banks, and the way this will slow growth, were flagged at the Jackson Hole, Wyo., meeting of policy makers last week by Christine Lagarde, the new managing director of the International Monetary Fund and, until recently, finance minister of France (see this assessment by Felix Salmon).
They were invited, with their wives, to come to a party beginning with a visit to Seattle and its leading industry, the Boeing Company; continuing with a 22-hour ride on a super-special, dome-car Union Pacific train from Seattle to Sun Valley, Idaho; winding up there with a symposium on worldwide capital problems, an afternoon of sport and recreation, and a formal banquet.
The regulator-participator model of Chinese government in promoting and protecting majority of sectors in the economy still leaves small and micro enterprises with capital problems.
Vikram Pandit, the new chief executive at Citigroup, is facing $13 billion to $18 billion in additional write-downs and pressure to break up the company to fix the capital problems there.
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"This was a human capital problem — these people don't grow on trees," Mr. Casserly said.
Apple could easily address Tesla's capital problem by buying, say, a 20percentt stake.
That realisation helps to explain why American commercial banks, despite appearing well capitalised compared with their European peers ahead of the crisis, have still had a capital problem.
"Daiei is a corporate revitalization problem, and that is really a human capital problem," Robert H. Dugger, managing director of the Tudor Investment Corporation, said on a visit here.
The last banking authority test plumped for the percentage method, with the disastrous consequence that many banks solved their capital problem by selling assets and stopping lending — and thus further crushing the economy.
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