Analysts are not impressed with the 100 billion euro ($139 billion) requirement in reserves that banks would have to come up with for their emergency reserves. Analysts do not think this is enough capital to restore the credit worthiness of European banks into the international money markets.
“The key to re-establishing confidence is to reassure markets you have dealt with the weak links,” Nicolas Véron, a senior fellow at Bruegel, a research organization in Brussels, said in a New York Times report. “It seems the parameters they have agreed on do not accomplish that.”
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Tisha Guerrero contributed to this article.
Read the disclaimer; Tom Lydon is a board member of the funds for Rydex|SGI.