• European banks can’t raise all needed capital in markets; could opt to cut dividends, retain earnings
• Some banks will need to be restructured or resolved
• Some of capital needs will come from public sources
• Global banks face wall of debt over next two years; $3.6 trln maturing
• Bank stress tests an opportunity to enhance transparency, boost confidence in banks
• Sovereign funding challenges extend beyond euro zone; US and Japan sensitive to rise in funding costs