Quantcast

Merkel backs recapitalization of European banks

By Gabriele Steinhauser

Associated Press

Published: Wednesday, Oct. 5 2011 8:05 a.m. MDT

BRUSSELS — Germany's chancellor said Wednesday that she would support a Europe-wide plan to recapitalize banks if such a move was deemed necessary.

"If there is a common view that banks aren't sufficiently capitalized for the current market condition" a financial firewall should be built, Angela Merkel said in Brussels after a meeting with European Commission President Jose Manuel Barroso.

The International Monetary Fund has called on Europe to put up billions of euros to recapitalize its biggest banks. Franco-Belgian bank Dexia SA is near collapse on worries it cannot withstand losses on the weak debt of some eurozone governments.

Merkel said "common guidelines" on the right amount of capitalization were necessary, adding that this needed to be done urgently.

Get The Deseret News Everywhere

Subscribe

Mobile

RSS