JP Morgan analysts have set out how Europe's governments might go about recapitalising their country's banks through a European version of the US's Troubled Asset Relief Programme, three weeks after first telling fund management clients that they support such a programme.

In a note published this morning, lead analyst Kian Abouhossein and his team set out their views on a Euro-Tarp, of up to €150bn in size, to ease the funding crisis in the region.