EU's Barnier: EU To Propose Bank Recapitalization Legislation

  BRUSSELS (Dow Jones)--The European Union will prevent its plan to
recapitalize the region's banks from causing massive asset sales that would
hurt the real economy, Michel Barnier, the EU commissioner for financial
regulation, said Tuesday.
  The European Commission, the EU's executive arm, will propose legislation to
coordinate the bank recapitalization plan, Barnier added.
  Banks can improve their capital ratios either through selling new shares or
cutting their balance sheets. With bank stocks trading at rock-bottom
levels, some observers have worried that banks will largely opt to sell
assets, causing asset price declines that would leave banks in worse shape.
  "We want to assure ourselves that there won't be a massive and sudden
'deleveraging,'" Barnier said in a statement during a meeting of EU finance
ministers here.


http://seaofopportunity.blogspot.com/ 


 *Special thanks to Option Radar, BMO Capital, MEB Options, Bloomberg, Reuters, Optionistics, LiveVolPro, CBOE, AMEX, Option Monster, T.O.P. group, and all of the options desks and traders we work with to provide the option flow! 


 No position at this time. Position declarations are believed to be accurate at time of writing but may change at any time and without notice.