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Highlights: G20, IMF/World Bank meetings in Washington

Sep 23, 2011, 7:30 p.m.

EUROPEAN CENTRAL BANK PRESIDENT JEAN-CLAUDE TRICHET

ON RISE OF RISKS:

"Risks to the stability of the EU financial system have increased considerably."

ON EUROPE AT THE CENTER OF A BROADER CRISIS:

"We have in front of us a global crisis of sovereign risk and we are the epicenter of this global crisis."

ON SPREAD OF STRESS:

"Over the past few months, sovereign stress had moved from smaller economies to some of the larger EU countries. Signs of stress are evident in many European government bond markets, while the high volatility in equity market indicates that tensions have spread across capital markets around the world."

ON RISKS OF CONTAGION:

"The high interconnectedness in the EU financial system has led to a rapidly rising risk of significant contagion. This is threatening financial stability in the EU as a whole and adversely impacts the real economy in Europe and beyond."

ON NEED FOR SWIFT RESPONSE:

"Looking ahead, decisive and swift action is required from all authorities."

ON NEED FOR COORDINATED EFFORTS;

"Authorities must act in total unison with a total commitment to safeguard financial stability. Supervisors should coordinate efforts to strengthen bank capital, including having recourse to backstop facilities, taking benefit from the possibility of the European Financial Stability Facility to lend to governments in order to recapitalize banks, including in non-program countries."

FORMER TREASURY SECRETARY AND WHITE HOUSE ADVISER LAWRENCE SUMMERS

ON SERIOUSNESS OF SITUATION:

"It's good that there are Bretton Woods institutions at a moment like this. This is the 20th annual meeting I have been privileged to attend. There has not been a prior meeting at which matters have had more gravity and at which I have been more concerned about the future of the global economy."

ON ECONOMIC RECOVERY:

"There has if anything been too much collective belt tightening. Our challenge is ensuring that growth proceeds at a satisfactory rate in the years ahead."

"The notion of expansionary fiscal contraction is oxymoronic and a bit moronic as well."

ON EUROPE'S PROBLEMS:

"The resolution of the situation in Europe in a way that will protect the global economy goes centrally to two questions. It goes to the credit of the large European sovereigns which has come into increasing doubt in the market system. And it goes to the credit of the major European financial institutions, whose ability to provide credit in the future has been impaired by what has happened.

"Without a resolution of that situation, matters in Europe will not be fundamentally changed.

"If a generous sovereign from Mars came down and paid off every penny of Greece's debt tomorrow, the fundamentals of the European crisis would not be altered. And I for one will not believe we have moved past the grudging incrementalist approach to policy that has been so costly so far until the terms of the policy discussion are not principally involving the next payment to Greece, as has been the case in recent weeks."

CITIGROUP CEO VIKRAM PANDIT:

ON IMPACT ON U.S. BANKS OF A EURO ZONE SOVEREIGN DEBT DEFAULT

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