EU leaders insist banks should seek own funding

AS leaders met to increase the funds available to an EU rescue facility last night, they insisted that banks should seek their own funding and even restructure before they tap capital from the European Financial Stability Facility (EFSF).

Leaders insisted banks would need to seek private sources of funding either by restructuring or giving creditors shares in exchange for their debts before they turn to the EFSF.

Ahead of the talks, Angela Merkel, the German chancellor, reassured her parliament that she would be seeking a commitment from her G20 partners that big banks — too big to fail banks — would be asked to restructure their operations before they seek state funding.