Trichet Sees a 'Lot of Hard Work to Do' on Some European Banks

The transcript discusses financial stability, comparing the banking systems of the US and Europe. It highlights the dominance of banks in Europe as a channel for financing the economy, contrasting with the US market-based system. The recapitalization efforts in Europe were significantly larger than in the US. Despite improvements, global financial risks persist, with continued over-leveraging and increasing debt levels, particularly in emerging economies.

What measures have been taken to recapitalize banks in Europe compared to the US?

What are the implications of over-leveraging in the global economy?