• Banks should seek private capital first, state capital as last resort
  • Germany, France have yet to discuss recapitalization issue. Debate needs to be at a European level
  • Sarkozy and Merkel to discuss Greece and banks on Sunday
  • Adjustments PSI in July 21 agreement, not wholesale rewrite
  • Elements to July 21 agreement could be modified include interest rates and maturities, not just haircut size