INSTANT VIEW: Analyst reaction to European bank plan

(Reuters) - Top European leaders holding an emergency meeting on the global financial crisis in Paris on Sunday rushed to craft a credible response before fearful world markets reopen, pledging to pump public money into banks.

According to a document circulated during the summit, two key things agreed by leaders were the commitments to provide capital and insure or directly buy into new debt issues.

Following are some economists' comments on the meeting:

ANALYST REACTION:

JOE PRENDERGAST, CURRENCY STRATEGIST, CREDIT SUISSE, ZURICH

"The G7 declaration was really short on detail and the very general nature of what they said is likely to be disappointing to markets. But it's likely there was an agreement that each of the main players provides those nuts and bolts and the comprehensive and detailed nature of the EU draft looks quite good and very promising. How quickly they can now enact these is now important -- and it's crucial they act as one across the board on these, without anyone dragging their feet. That is the only way it can really work.

"In many respects, Europe is the most exposed to the cross-border aspect of this whole crisis. The banks are exposed to bad U.S. dollar debts, not euros, and they can't simply print money to get out of this. If they were to reflate to get out of this, any ensuing euro weakness against the dollar just exaggerates their position.

THOMAS STOLPER, CURRENCY STRATEGIST, GOLDMAN SACHS, LONDON:

"It looks pretty similar to what the UK announced, but we don't know the exact details yet. What's interesting is that Sarkozy spoke about preferred shares, governments taking stakes in banks through preferred shares."

"The coordination issue is clear. It was quite impressive. What they came out with tonight, that's fine. They've made great progress, All this is very impressive, no doubt about it. The only issue is how they recapitalize the banks. Will the governments be running the banks or not? It's a big difference whether you act with the management of the banks or not.

"We haven't got the exact details yet and we really have to see what the national governments say. The fact that Britain seems to be moving ahead in terms of buying ordinary shares in the banks and the Europeans only wanting to take up preferred shares ... might be seen as insufficient."