Capital concerns to dominate Santander investor day

miércoles 28 de septiembre de 2011 16:53 CEST

* Santander holds investor event in London on Thurs, Fri

* Capital levels key concern for investors

* Bank to be quizzed on possible rights issue, asset writedown

* Possible participation in CAM auction also in focus

By Sonya Dowsett

Sept 28 (Reuters) - Investors will quiz Spain's Santander on any plans to raise capital and write off Spanish real estate losses at a two-day event in London this week, against a backdrop of plummeting confidence in European banks.

The euro zone's biggest bank held its last investor day in October 2008, on the heels of the collapse of Lehman Brothers. The investors' meeting planned for Thursday and Friday comes at a tumultuous time for European banks caught in the grip of a euro zone debt crisis.

Foremost amongst investors' concerns is a crunch on funding in the face of frozen wholesale money markets.

One investor said Santander may be planning a sale of problem loan portfolios, an extraordinary provision or a rights issue to tackle any capital shortfall.   Continuación...