BBC News
October 5, 2011
There are some European regulators and politicians who regard the downgrade of Italy and the woes of the Franco-Belgian bank Dexia as positive events (oh yes) - because they hope that these serious but containable shocks will speed eurozone governments into taking credible, evasive action ahead of more devastating shocks.
And there were signs from yesterday's Ecofin meeting that European finance ministers increasingly recognise the need to strength European banks, so that the banks can better absorb losses on loans to European nations with excessive debts.
It would be the bucket of sand to chuck on the fires raging in European banking markets, as Europe's sovereign debt crisis continues its metamorphosis into a pernicious banking crisis.
Olli Rehn, the European commissioner for economic affairs, told the Financial Times that "capital positions of European banks must be reinforced" and he talked of a "concerted coordinated approach".
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