by Calculated Risk on 10/26/2011 08:14:00 PM

UPDATE: AP reports an official said there is "broad agreement" on cutting Greek debt. Apparently this is a 50% cut ... no details.

Telegraph: Debt crisis: live

00.30 Jean-Claude Juncker's (head of the euro group) spokesman has told Bloomberg that Merkel and Sarkozy have met with bank representatives and are now relaying the outcome to the rest of the eurozone leaders.

Bottom line, Germany wants banks to accept they will lose between 50pc and 60pc of their Greek sovereign debt investments. The banks don't want this. Question is, where do they meet in the middle?

WSJ: Live Blog: European Debt-Crisis Summit

Talks on leveraging the EFSF could drag into November, says a source.

From the NY Times: Europe Agrees on Plan to Inject Capital Into Banks

European leaders agreed Wednesday on a plan to force the continent’s banks to raise new capital to insulate them against potential sovereign debt defaults, but disagreements over new financial aid to Greece threatened to derail efforts to devise a comprehensive solution ...

“There has been no agreement on any Greek deal or a specific ‘haircut,’ said Charles Dallara, the lead negotiator for the Institute for International Finance. “We remain open to a dialogue in search of a voluntary agreement. There is no agreement on any element of a deal.”

Financial Times.

Council of the European Union (official releases)

EU Press Releases (nothing yet as of 8:15 PM ET)