From the piece you quoted:
Officials attending this weekend's meetings suggested that the EFSF may have to be boosted to up to £1.7 trillion, almost five times its current size, to convince markets that it could contain the destabilising impact of a Greek default. Instead of European governments being forced to pour in cash up front, Geithner and others are calling for the EFSF to be allowed to underpin the operations of the ECB, by guaranteeing to bear part of any losses it is forced to take on sovereign bonds. That could massively boost the ECB's buying power and help it to damp down the crisis in the event of a Greek default.
Swedish newspapers have been a little more forthright, and quote an anonymous (you bet!) powerbroker who attended the IMF/World Bank meeting who said:
We have to find a mechansim to convert every euro in the EFSF to five euros. So far there is no agreement on how to do this.
The German Bundestag has not agreed to the initial (second) package yet which is supposed to contain those €440 bn that will then be magically (and without any further parliamentary involvement of course) converted to five times as many euros. Can you say leveraged
? and convoluted, no sorry, structured financial products!? I thought we'd had enough of those.
But, but, at least a silver lining in today's news. Suddenly everyone seems to be open about the underlying problem - it is not a question of saving Greece or even Portugal, Spain or Itlay. No it is first and foremost the French and German banks that have to be rescued!!!
(Yes, other banks as well [eg Unicredit, Dexia,])