EU Leaders Under Pressure for a Plan

Markets speculate Europe will agree on recapitalization plan amid fears banks will have to write down holdings of government bonds.

European Union leaders are under pressure from investors to devise a comprehensive plan to rescue the region’s banks before a Group of 20 summit in November.

“A blanket recapitalization of banks, in some cases, over-capitalizing those banks, would be the only thing that’s going to restore confidence at this juncture,” Simon Maughan, head of sales and distribution at MF Global Ltd. in London, said in a Bloomberg Television interview yesterday.

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