Investors Shy Away From Providing U.S. Lender Capital

New York–Big investors are becoming increasingly nervous about pouring money into banks as bad loan and investment losses mount. Bank executives have met with a surprisingly large amount of opposition from investors to capital-raising transactions in recent weeks, The Wall Street Journal said Monday.Banks attempting to correct their balance sheets by distributing stock and securities to investors could have to woo investors in other ways–which may increase the cost of their deals.Many financial institutions are struggling as regulators place more restrictions on Wall Street firms and commercial banks to ensure they have the capital to weather the current credit crisis. Small, regional banks and independent lenders have been especially affected by real estate and construction loan portfolio losses.With shareholder resistance, lenders may be forced to work with a smaller amount of investors who are open to contributing money, the Journal said.