June 22, 2012
Spain says euro zone is open to direct bank aid, echoing an earlier call from the IMF
"The option is open," Luis de Guindos said on arrival for a second day of talks among European finance ministers in Luxembourg, (link RTE).
IMF Managing Director Christine Lagarde warned yesterday against a eurozone plan to rescue Spain's embattled banking sector that would channel aid through the government (WSJ), suggesting the eurozone should set up an new mechanism to directly recapitalize banks in order to "break the negative feedback loop" between banks and sovereigns.
