IMF warns shaky Euro banks

The International Monetary Fund said weak European banks were “caught in a maelstrom” and must beef up their financial buffers, insisting more must be done to shore up the global financial system.

The IMF said the weaker tier of Europe’s banks were facing pressure on multiple fronts, from thin capital reserves – which help absorb losses in sudden downturns – and shaky investments still held on their balance sheets to unstable sources of financing.