Euro leaders race to shore up banks

BERLIN, Oct 8 (AFP): Europe's leaders scrambled Friday to reassure investors the continent's banks were safe, stepping up calls for fresh cash injections as Paris played down reported differences with Germany over the crisis. While EU leaders agree on the need for action to shore up over-exposed banks, a division of opinion reportedly emerged between France and Germany on how to proceed, two days before their leaders are due to meet in Berlin. In recent days, the focus of the eurozone crisis has shifted from Greece's efforts to manage its debt to the plight of banks in countries like France who hold large amounts of bonds issued by Greece and other weaker eurozone states. The International Monetary Fund has estimated that Europe's banks may need between 100 to 200 billion euros to cover potential losses. Highlighting the urgency of the task, ratings agency Moody's downgraded a dozen British banks over concerns government support for lenders could be withdrawn.