Article: Bank shares dive over capitalisation worries; Iseq briefing: Closed at 2,811.73 Down 61.34.(Business)

THE shares index slumped again yesterday as banking stocks took a battering, with investors fearing that Bank of Ireland and AIB will find it increasingly hard to raise their own capital, even after Nama empties them of toxic loans.

Shares in AIB declined by 23c to [pounds sterling]1.45, Bank of Ireland fell by 20c to [pounds sterling]1.41 and Irish Life and Permanent lost 91c to [pounds sterling]4.33.

News that UK banks, Lloyds Group and RBS, will soon tap the markets for tens of billions of pounds in rights issues dashed hopes that both AIB and BoI will be able to raise enough cash in a saturated marketplace.

Elsewhere, shares in Independent ...

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