Latest European Bailout Rumor Summary

Tyler Durden's picture

In the interests of sanity and reality, we thought it worthwhile to note the wild and whacky rumors and statements emanating from Europe this morning.

A growing number of politicians and bankers are admitting that perhaps, just maybe, banks do need additional capital - but clearly they do not see need to pay for it as their comrades in Europe will help:

*IMF'S BORGES SEES `SERIOUS REASONS' TO BE CONCERNED ON EUROPE

*BORGES SAYS EUROPE NEEDS TO TAKE `DECISIVE ACTION' VERY SOON

*IMF'S BORGES SAYS EUROPE'S BANKS MAY NEED EU100-200B IN CAPITAL

*BAROIN: COLLECTIVE EUROPEAN RESPONSE NEEDED TO CRISIS   :GLE FP

*BAROIN SAYS SUPPORT FOR BANKING SYSTEM IS EUROPEAN ISSUE

*MERKEL SEES IMPORTANT THAT EUROPEAN BANKS HAVE ENOUGH CAPITAL

*ECB SAYS LENDING TO BANKS ROSE EU 17.5BLN TO EU 588.8BLN

But have no fear, the Dexia situation is under control as the plan to plan is going well and this means nothing for the rest of France or French govvies:

*BAROIN SAYS FRANCE, BELGIUM WILL SUPPORT BANKS AS IN 2008

*BAROIN: DEXIA GUARANTEES WON'T INCREASE FRENCH STATE DEBT

*BAROIN SAYS MARKETS ARE PUSHING BANKS TO HAVE MORE CAPITAL

*BAROIN SAYS DEXIA DOESN'T THREATEN FRANCE'S CREDIT RATING

*BAROIN SAYS FRENCH BANKS DON'T HAVE LIQUIDITY, SOLVENCY ISSUES

*NOYER: FRANCE DOESN'T NEED BANKING CONSOLIDATION       :DEXB BB

*NOYER: NO CONCERN OVER FRANCE'S AAA IN LIGHT OF DEXIA  :DEXB BB

And that Italy downgrade - don't worry:

*NOYER: ITALY TAKING NECESSARY STEPS TO TACKLE PUBLIC FINANCES

And while banks are liquid and solvent - have no fear - maybe we should look into who 'might' need capital (stress test 3):

*MERKEL SAYS CRITERIA NEEDED TO ASSESS BANK CAPITALIZATIONS

*MERKEL SAYS READY TO DISCUSS BANK RECAPITALIZATION IF NEEDED

Oh and lest we forget Greece, where they admitted that the recession came earlier than expected this morning, it seems bigger haircuts are on their way:

*MERKEL SAYS PRIVATE SECTOR INVOLVEMENT MAY NEED TO BE REVISED

Have fun trading off these...

Source: Bloomberg