Surprise StanChart rights issue could 'destabilise' banking sector

Standard Chartered's surprise £3.3bn rights issue has cast doubt on the capital requirements of the entire banking sector, Henderson financials specialist Emily Adderson says.

Adderson, manager of the £87m Henderson Global Financials fund, says the cash call shows banks may need to raise more capital than previously expected. "It has thrown everyone really. We have seen banks such as Deutsche and National Bank of Greece look to raise cash, but not the perceived higher quality institutions," she says. "It shows there are still question marks over capital requirements and what regulators are expecting of the banks. Standard Chartered has obviously interpreted from the FSA that it needs to raise more capital and it is doing it sooner rather than later. "Thi...