ECB's Stark: Greek restructure could eclipse Lehman

The consequences of a Greek debt restructuring on Europe's markets are unforeseeable and could eclipse the Lehman Brothers insolvency that precipitated the global financial crisis, a top ECB policymaker said on Monday.

Juergen Stark, a member of the ECB's Executive Board, said a Greek restructuring would threaten the solvency of Greek banks and have repercussions across euro zone financial markets, possibly resulting in a sell-off in other countries' bonds.
"This would of course particularly impact those countries that currently have difficulties financing themselves on the markets," Stark said in the text of a speech for delivery in Berlin.
"The impact of a restructuring for the stability of the financial system in Europe are not foreseeable and could eclipse the impact of the Lehman insolvency," he added.