Euro-Zone Rifts Watchdog Worried About Europe's Banking Sector

The head of Europe's banking watchdog has called for the euro rescue fund to provide direct aid to ailing banks to help calm markets. The head of the IMF made a similar demand, exposing an apparent rift with EU governments on how to handle the debt crisis. Berlin and the EU have rejected such changes.
The skyline of Frankfurt, Germany's banking capital. The European banking watchdog is calling for the euro bailout fund to be given even greater powers.

The skyline of Frankfurt, Germany's banking capital. The European banking watchdog is calling for the euro bailout fund to be given even greater powers.

Foto: Arne Dedert/ dpa
cro -- with wire reports