CRISIS

EU Reaches Tentative Debt Deal

Will need to raise $139 billion by June 2012.

European Union leaders reached a tentative agreement on Wednesday to tamp down the mushrooming debt crisis—but some analysts said the lack of real details could spell trouble with banks. According to early versions of the agreement, banks will need to hold 9 percent of capital reserves and will also need to raise $139 billion by the end of June 2012. A statement released by the European heads of state participating in the euro-zone debt talks says that “a truly coordinated approach at the EU level is needed regarding entry criteria, pricing and conditions" for banks. Although the road to Wednesday’s summit has been rocky—financial leaders canceled a meeting set to be held Tuesday—German Chancellor Angela Merkel won a key victory for the bailout expansion in her country’s Parliament.