• EU summit later today but expectations are being downplayed
• Market expectations now revolving around a 3-pronged solution; bank recapitalisation, more private sector involvement and EFSF leveraging
• Still lots of back-room horse trading going on re bank haircuts, what the special purchase investment vehicle inside the EFSF will look like, whether or not hard numbers will be promised etc
• What role if any does ECB and its policy play
• Latest reports suggest that this may indeed drag out until the ‘last minute’ which Merkel and Sarkozy gave as the November 7th EU summit