Rather, they are going to announce a PROCESS for getting to this solution.
Regular readers know that this is exactly what your humble blogger has been advocating.
My blueprint for the process Europe should adopt is based on disclosure (first by the financial regulators and then using a data warehouse with each bank's current asset and liability-level data).
With disclosure, market participants can use their analytical capabilities to help in determining how much capital in total and for each bank is needed for a recapitalization. Subsequently, a decision can be made as to the source of the capital - private markets, retained earnings, bailouts...
Simultaneously, European officials can tackle resolution of the sovereign debt problem.
From the Telegraph Live column: