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But half of the recapitalization fund, or $21.3 billion, would come from planned privatizations of Greek state assets — a program widely seen to have stalled — as well as from a new Greek-German solar energy project.
European officials might agree to bend the rules, allowing recapitalization of the Spanish banks through Europe's bailout funds, Mr. Schmieding said, with the money provided directly to Spain's bank recapitalization fund, known as the FROB, subject to conditions.
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The central bank said last week that it would begin lending on normal terms to the Greek banks once they received the euro zone recapitalization funds, which will eventually total 48 billion euros.
Second, the math of the program now looks a bit odd, at least if the recapitalization funds are going to be restricted to the $250 billion that Treasury has, at this point, committed to recapitalization (as opposed to buying up "toxic assets").
European Union governments have handed over about €3 trillion, or $4.2 trillion, in guarantees, recapitalization and other funds to their financial institutions since the start of the crisis, according to commission figures.
The periphery banks need their recapitalization to be funded by the state, which increases national debt.
While we have not varied one inch from our plan to raise $5.2 billion in senior debt and to utilize cash and receivables at Dell to fund our recapitalization proposal, Dell has continued to move the goal posts by implying that more cash is required for our proposal to be implemented.
The company plans to use the proposed offerings' proceeds to help fund a recapitalization plan, which includes buying back a portion of the company's existing debt, according to a company filing with the Securities and Exchange Commission.
China has issued $32.5 billion in recapitalization bonds, but these funds are little more than a drop in the bad-loan ocean.
Though no direct recapitalization of banks from that fund is likely to take effect before the end of the year, a promise that Ireland could receive such help could bolster market confidence.
In a study published last week, the International Monetary Fund said the recapitalization of U.S. banks had outstripped similar moves among European banks, a shortcoming not lost on Mr. Trichet.
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