Global Banks Face $5 Trillion Credit Squeeze
Banks across the globe had to raise trillions of dollars in capital as a result of the financial crisis, and now the bill for that borrowing is coming due.
It’s not a pretty picture. Worldwide, banks must repay or roll over $5 trillion of debt to bondholders and other creditors through 2012, according to the Bank for International Settlements.
Of the $5 trillion total, European banks owe $2.6 trillion, and U.S. banks $1.3 trillion.