Head of IMF rebuffed on banking call

GERMANY, Spain and the European Union rebuffed International Monetary Fund managing director, Christine Lagarde’s call for an “urgent,” potentially mandatory, recapitalisation of Europe’s banks.

German Finance Ministry spokeswoman Silke Bruns said European governments have already taken measures to strengthen banks, including increased capital requirements under so-called Basel III rules.

Spain is already pushing lenders to bolster capital, said a spokesman for the Madrid-based Finance Ministry, who declined to be named in line with policy.