FT article revives banking concerns‏

An FT article has revived risk aversion out inthe markets, by citing an S&P study which has raised questions over the financial strength of some of the biggest banks ahead of new rules that could require them to raise more funds. The analysis by S&P based upon their risk adjusted capital (RAC) ratios - a measure of balance sheet strength - showed that HSBC is the best capitalised bank in the world at 9.2%, while UBS, Citigroup and several of Japan's biggest banks were among the weakest with bare 2% ratios. S&P's capital ratio measure reportedly foreshadows the currently being overhauled Basel II rules that areexpected to be set early next yr. Japanese banking shares are being hitthe worst by the rpt, with financials down over 1% this mrg, whilst S&Pfutures are bobbing modestly in the red.