Big French bank Crédit Agricole is planning to raise over $9 billion after huge losses in its investment bank, which made big bets on subprime related debt, resulted in a big write-down and lower profit.

According to The Wall Street Journal, "Crédit Agricole said it will launch an action plan to refocus the corporate and investment banking division on its core activities and to reduce risk." It may be a little late for that. Much of the damage is already done.

What it is not too late for is the realization that with each new round of bank earnings, the mortgage securities problem is not going away. Several large American banks say they see some light at the end of the tunnel. But if the US mortgage market continues to be marked by defaults and falling housing prices, that point of view may be deeply flawed.

Another point of view is that banks like Crédit Agricole and Citigroup (NYSE: C) are raising money to make up for losses in the past. The more ominous look at the trouble is that they are bringing in capital in anticipation of future problems.

Douglas A. McIntyre is an editor at 247wallst.com.