US banks may need to raise $65bn of additional capital to cope with mounting losses from a global credit crisis that will not peak until 2009, Goldman Sachs analysts said on Tuesday, reports Reuters. The new capital would be on top of $120bn already raised by the industry, said the analysts, led by Richard Ramsden. Banks will not turn until credit costs peak, and weaker banks are unlikely to benefit from consolidation as bank deals always slow when credit is deteriorating, the analysts noted. Goldman said it lowered its price targets for 14 banking companies and cut its 2008 earnings-per-share forecasts for 11.
