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Any recapitalization plan would add more risk to the company in the form of higher debt.
The plans will be reviewed by the banking authority in early February, and authorities have the power to veto any recapitalization strategies they don't agree with.
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Any bank recapitalization plan would also have to be in line with European Union rules guarding against unfair state subsidies.
The text also made it clear that any bank recapitalization would be undertaken by national governments and not as part of a broader E.U. safety net for countries already struggling to deal with their vast debts.
In any event, recapitalization would buy only a little time.
In an interview with the Wall Street Journal, Dell stated that he, in the language of the paper, "wouldn't sell assets or commit to any leveraged recapitalization as some shareholders have advocated".
"Any amount of recapitalization of banks, if the country itself is not on the right track, is a waste of time".
Merkel made clear that any direct bank recapitalization, if and when it is allowed, would not be retroactive and could only be applied for future contingencies.
Referring to the use of the European bailout instrument, the European Stability Mechanism, Mr. Dijsselbloem suggested that he wanted private-sector involvement in any future direct recapitalization of banks to avoid "additional strain" on national budgets of contributing nations.
If a recapitalization becomes necessary to restore investor confidence in any French bank — even if the banks do not technically require new capital — then the government will be prepared to take such action, said a senior government finance official involved in managing the situation, who was not authorized to speak publicly.
"This is a recapitalization.
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