Barroso pushes for coordinated bank action

THE European Commission is pushing for a coordinated capital injection for banks to shield them from the fallout of a potential Greek default as Germany urges each country to prepare its own blueprint.

“We are determined to do everything necessary to ensure that Europe’s banks are able to play their essential role in lending,” commission president, Jose Manuel Barroso, told reporters in Brussels yesterday. “Close coordination at European level is essential.”

Financial shares continued their advance after German Chancellor Angela Merkel fed speculation that euro policy makers are working on plans to boost bank capital.