European Banks Face Investor Boycott in Search for Capital

Shareholders in European banks are resisting calls to pump more capital into the industry, pressure that may leave taxpayers as the investors of last resort.

European Union leaders are working on a plan that may force banks to raise 100 billion euros ($137 billion) to more than 300 billion euros in additional capital, according to analysts’ estimates. That money would come either from existing investors or state funding that may come with strings attached. Schroders Plc and Swisscanto Asset Management say they’re reluctant to invest, given a failure to resolve the region’s fiscal crisis may send financial stocks even lower.