Bloomberg News

Europe Faces Recession, Inadequate Debt Backstop, Altman Says

November 23, 2011

Nov. 23 (Bloomberg) -- Europe is facing a recession that even a $1 trillion rescue fund couldn’t stave off amid the risk that countries such as Italy and Spain lose access to private markets, said Roger Altman, co-founder of Evercore Partners Inc.

“It’s pretty obvious that if you look at these deposit flows and you look at the overlay in its entirety, that Europe is facing recession,” Altman, a former U.S. deputy Treasury secretary, said today in an interview on CNBC. “It’s not clear that a trillion would be sufficient” to solve the crisis and promote confidence among investors, he said.

European leaders agreed last month to boost the region’s stabilization fund to 1 trillion euros ($1.3 trillion) to help contain the crisis.

--Editors: Steve Dickson, Dan Kraut

To contact the reporter on this story: Charles Mead in New York at cmead11@bloomberg.net

To contact the editor responsible for this story: David Scheer at dscheer@bloomberg.net


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