El-Erian: Time Running Out for European Policymakers

“The bailout package for Spain’s banks wasn’t big or comprehensive enough to boost confidence among private investors, as Monday’s market reaction demonstrated, Mohamed El-Erian, CEO of Pimco, the world’s largest bond fund, says in a column published by CNBC.com.

While the plan to provide up to 100 billion euros ($125 billion) was larger than the range of estimates of the hole in Spanish banks, details of the plan remain unclear and the package failed to break the troublesome link between the weak Spanish banks and deteriorating sovereign creditworthiness, says El-Erian.

Reports that Spanish banks sold some of their government bond holdings were also troubling, he says.”

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