European leaders struck a deal to bolster banks' capital, increase the region's rescue fund and reduce Greece's debt. The agreement sparked a rally in stocks worldwide, but many economists and analysts are not completely sold. The European Banking Authority said banks need to raise €106 billion in capital. "The recapitalising of Europe's banks will not in itself solve the sovereign-debt crisis," said AFME CEO Simon Lewis. "However, this plan is set within a time frame that should enable them to determine how best to strengthen their capital positions in ways that treat all stakeholders fairly."
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