The oldest private bank, where Prescott Bush was a founding partner, Brown Brothers Harriman, is out with a commentary on the Greek financial crisis.
There conclusion is that Greece is not too big to fail, Further, they point out as we have that:
Greek officials know the real score. At 2-3% of the euro zone’s GDP, it is not too big to fail. The reason that European officials are hoping Greece does not default is not so much out of sympathy to be sure; rather what is at stake is unadulterated self-interest. Slightly more than half of Greek debt is owned by foreign investors.
The lion’s share is in Swiss, French, German and British banks. Some of the exposure may have been offset in the credit default swap market, but then impact on the fragile banking system could be simply overwhelming.
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