Greek Fallout Risks ‘Lehman’s Moment,’ Zoellick Tells Observer
The situation in Greece risks triggering a global crisis similar to that following the bankruptcy of Lehman Brothers Holdings Inc., World Bank President Robert Zoellick told the Observer.
“Europe may be able to muddle through but the risk is rising,” Zoellick, who said he will present his warning to the Group of 20 summit this week, told the newspaper in an interview. “There could be a Lehman’s moment if things are not properly handled.”
Developing nations need to “prepare for the uncertainty coming out of the euro zone and the wider financial markets,” he said. “Uncertainty in markets is now starting to increase costs for developing countries.”
To contact the reporter on this story: Abigail Moses in London at Amoses5@bloomberg.net
To contact the editor responsible for this story: Paul Armstrong at Parmstrong10@bloomberg.net