by Terence Roth
Wall Street Journal
October 26, 2011
A lowdown on what’s happened so far today as the world awaits what will be announced from the summit in Brussels.
The News: European Union leaders will decide later today whether it will be possible to announce firm decisions after their summit, a spokesman for the European Commission said Wednesday. Leaders will decide tonight “what is suitable and possible” to announce, an EU spokesman said at a press conference. Under discussion are the size of the writedown on Greek bonds owned by private investors, a new bailout fund for bankrupt governments and a plan to increase capital in European banks.
The Leaks: UniCredit SpA Chief Executive Federico Ghizzoni says Wednesday he expects the writedown banks will be asked to take on Greek bonds to be in the 40% to 50% range. Eurogroup officials say privately that a haircut is zeroing in on 50%. Banks ‘volunteering’ to the writedowns is an essential element to the next Greek bailout package. A draft communique circulating in the media is stingy on detail, with blanks possibly to be filled in later tonight.
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