One prong involves a series of bilateral loans offered by national governments, central banks or by national treasuries, which would in turn be offered with preferred creditor status to recipient nation-states in the euro zone.

FORBES: Geithner To EU: IMF Will Play A Role, But Without Fed Money

If the fund agrees to participate, its preferred-creditor status will be punctured.

WSJ: Euro-Zone Bailouts Leave Public Creditors at a Loss

Relying on vast infusions of money from the IMF could actually worsen the problems of a country like Italy, since the fund's presumed preferred-creditor status would push private bondholders further down the pecking order.

ECONOMIST: The euro zone��s rescue strategy still does not add up