Bailouts or Bankruptcies? Europe Begins Working on Plan B for the Euro

How should the euro zone solve its currency crisis? European capitals are currently preparing to inject fresh capital into their banks with some economists arguing that saving financial institutions would be cheaper than propping up entire countries.
World Bank President Robert Zoellick, International Monetary Fund President Christine Lagarde and German Chancellor Angela Merkel: Would it be better to rescue banks or states?

World Bank President Robert Zoellick, International Monetary Fund President Christine Lagarde and German Chancellor Angela Merkel: Would it be better to rescue banks or states?

Foto: Markus Schreiber/ AP