Riot policemen stand near a burning parasol during protests against austerity measures in Athens, June 28, 2011. With Greece teetering on the brink of bankruptcy, parliament is due to vote this week on a package of spending cuts, tax increases and privatisations agreed as part of a massive bailout aimed at averting the euro zone’s first default. (Yannis Behrakis/Reuters)
Greek woes may eclipse Lehman: Ackermann
Deutsche Bank’s CEO described the situation in Greece as critical and warned contagion to other eurozone members could lead to a crisis bigger than the one sparked by the collapse of Lehman Brothers.
Governments across the single currency bloc are pushing the banks, pension funds and insurance firms that hold Greek sovereign debt to play a role in a second rescue package for the heavily indebted eurozone nation.
Josef Ackermann cautioned against any steps that could spread the crisis to other vulnerable countries in the 12-year-old currency bloc.
“If it is Greece alone, that’s already big. But if other countries are drawn in through contagion, it could be bigger than Lehman,” the Deutsche Bank chief said at a Reuters banking event on Monday.