by Calculated Risk on 9/26/2011 03:55:00 PM

From CNBC: Officials Working on a Sovereign Debt TARP for Europe?

European officials are working on a detailed plan aimed at shoring up European bank stability, according to an official who spoke with CNBC’s Steve Liesman.

The plan appears to have a lot of moving parts. It would involve money from the European Financial Stability Facility (EFSF), a bailout vehicle created in 2010 to alleviate the sovereign debt crisis in Europe, to capitalize a special purpose vehicle that would be created by the European Investment Bank, a bank owned by the member states of the European Union.

More details at the article.

The Greek 2 year yield was up to 71%. The Greek 1 year yield is at 138%.

The Portuguese 2 year yield is up to 18.2% and the Irish 2 year yield was down to 8.8%.

The Italian 10 year yield was up slightly to 5.6%.

On August Home Sales:
• New Home Sales decline slightly in August
• Last week: Existing Home Sales in August: 5.0 million SAAR, 8.5 months of supply
• Graph Galleries: New Home Sales and Existing Home Sales