Europe looking at multi-trillion bailout plan

Rick Moran
The first question we all have is what, if any role, will the Fed have in this gigantic bailout. The answer is, nothing visible. The Federal Reserve will probably remain on the sidelines, waiting to see if any more assistance will be needed. In short, the Fed will probably backstop any deal made by the Europeans among themselves. The Telegraph outlines the high points:. First, Europe's banks would have to be recapitalised with many tens of billions of euros to reassure markets that a Greek or Portuguese default would not precipitate a systemic financial crisis. The recapitalisation plan would go much further than the €2.5bn (£2.2bn) required by regulators following the European bank stress tests in July and crucially would include the under-pressure French lenders. Officials are confident that some banks could raise the funds privately, but if they are unable they would either be recapitalised by the state or by the European Financial Stability Facility (EFSF) - the eurozone's...(Read Full Post)

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