Banks Rights issues tanking ... ordure to hit the air conditioning real soon now

Royal Bank of Scotland (LSE: RBS.L ), HBOS (LSE: HBOS.L) and Bradford and Bingley (LSE: BB.L ) have all announced major rights issues critical to their companies to recover from the losses piled up by imprudent jiggling with financial flannel and monetary legerdemain.

RBOS rights issue shares are priced at 200p today (Friday)the shares closed at 228.5p

Underwriters UBS , Goldman Sachs and Merrill Lynch , will be left with a sizeable chunk of unsealeable shares - leaving a large and very nasty stock overhang for years.

Bradford and Bingley made a £300Mn cash call on share holders on 14th May when shares traded at 135 p (435 p May 3oth 2007) the issue price is 80p. Today (Friday) they closed @ 88.25 p (they fell 7% today) Underwriters Citi and UBS will be left holding a chunk - as will the Directors have bravely agreed to take up their rights.

HBOS made a rights issue to to raise £4Bn at the end of April when shares were at 492 p and are today Friday closed at 400p, against the 275 p rights issue. The issue is fully underwritten by Dresdner Kleinwort and Morgan Stanley

Failure of these banks to raise funds from shareholders will have cataclysmic results in City finacial markets - also expect "sovereign funds " to Hoover up cheap equity and maybe major banking re-shuffles are already underway.