"Amid such circumstances, SMFG considers it necessary to enhance its capital base".
The bond insurer needs to shore up its capital base as it faces big expected payouts from guaranteeing subprime mortgage bonds and other risky debt.
European shares were higher, led by banks, on Wednesday after Barclays said it was raising 4.5 billion pounds ($8.8 million) from investors as it sought to fortify its capital base and pursue growth.
European shares closed on a high note, led by banks, on Wednesday after Barclays said it was raising 4.5 billion pounds ($8.8 million) from investors as it sought to fortify its capital base and pursue growth.
In its statement, Knight Capital said its capital base, the money it uses to conduct its business, had been "severely impacted" by the event and that it was "actively pursuing its strategic and financing alternatives".
The Asian financial crisis of the late 1990s forced it to retrench and rebuild its capital base.
Dresdner said that the credit facility would not have any material impact on its capital base, adding that it did not plan to add the SIV to its books.
The bank said that despite the impairment charges it remained "strongly capitalized at the current time" and "happy" with its capital base.
Last year, it missed the 3% target as it did not have sufficient capital and it was given until 2015 to increase its capital base and now has a leverage ratio of 3.3%.
The central bank signaled last week that it was growing uncomfortable with the risk government bonds were adding to its balance sheet — it asked national central banks to almost double its capital base.
The Belgian-Dutch bank said that in the "current exceptional circumstances," it had decided to take certain steps to strengthen its capital base.
