DOW BRIEFLY CUTS LOSS ON HEADLINES ABOUT EUROPEANS RECAPITALIZING BANKS

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Photo: Ethos on Wikimedia Commons

Just out.There is an FT headline making the rounds about possible acceleration of bank recapitalizations in Europe.

The Dow went from being down 490 to down about 390 in a matter of seconds.

That being said, it doesn’t sound that promising in terms of some big Eurotarp.

From FT:

European officials look set to speed up plans to recapitalise the 16 banks that came close to failing last summer’s pan-EU stress tests as part of a co-ordinated effort to reassure the markets about the strength of the 27-nation bloc’s banking sector.

A senior French official said the 16 banks regarded to be close to the threshold would now have to seek new funds immediately. Although there has been widespread speculation that French banks are seeking more capital, none is on the list. Other European officials said discussions were still under way.

So this sounds vague, and not necessarily about the banks that people are that worried about, and what’s more, it’s not even about the sovereigns.

Here’s more good insight from ForexLive, which points out that this is basically all bad news. Fresh concerns for 16 named banks

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