Bloomberg News

EU Grapples With Bank Capital as Crisis Marathon Enters Day Two

October 22, 2011

Oct. 22 (Bloomberg) -- European Union finance chiefs started to grapple with how to protect banks from the fallout of a potential Greek default as they began the second day of a six- day marathon to end the debt crisis.

The 27 finance ministers, meeting in Brussels, would address the “framework of bank recapitalization,” the Netherlands’ Jan Kees de Jager told reporters as he arrived.

Spain’s Elena Salgado said the amounts to be raised by banks depended on which Basel standards for capital adequacy are applied. “Until that is clear, we can’t say what capital is needed.”

She said discussion of investor losses on Greek holdings wouldn’t be addressed by the 27 ministers today as they were a topic for officials from the 17 euro countries.

Final decisions aren’t likely until a leaders’ summit on Oct. 26, De Jager said.

--With assistance from Jonathan Stearns, Tony Czuczka, Mark Deen, Anabela Reis, Thomas Penny, and Chiara Vasarri in Brussels. Editors: James Hertling, Jones Hayden

To contact the reporters on this story: Fred Pals in brussels at fpals@bloomberg.net; Stephanie Bodoni in brussels at sbodoni@bloomberg.net

To contact the editor responsible for this story: James Hertling at jhertling@bloomberg.net


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