This graph from the WSJ highlights a “stress test” conducted by KBW on some of Europe’s biggest banks. While the US followed 6% tier 1 ratio and 4% TCE, the EU perhaps needs higher ratios just because they are in worse shape than the US banks and therefore, would probably need for capital buffer.
The US estimated some $75 billion additional capital infusion for its banks. The report, on the other hands, suggests an amount about 8x as much – $600 billion, with the 16-nation Euro taking more than 60% of that.
Report by Fidler and Shah (WSJ)