Mr. Draghi's words have international heft, since he chairs the Financial Stability Forum - a group of global regulators and central bankers working on solutions for preventing the next blowup. He indicated the framework of the global financial system is undergoing a gut check: "A resilient infrastructure is one that is capable of withstanding the effects of the failure of a large financial institution. As we speak, this objective is being tested by reality."
Overall, he said, the global banking system has enough capital to meet its needs "under reasonable scenarios." He offered no prediction about whether market conditions would continue to be "reasonable" but did say banks will need to raise "at least once again the amount of capital raised since the crisis began." Mr. Draghi's estimate of that amount, according to a person familiar with the matter, is $350 billion.
