Half of German Bankers Expect Euro Default, Ernst & Young Says

Nearly half of German bankers expect at least one euro region nation to default on its debt, auditing firm Ernst & Young said, citing a survey.

Forty-seven percent of respondents forecast a default at least “over the medium term,” Ernst & Young said, citing a survey of managers at 120 German banks in December by Bielefeld-based Valid Research. Only a quarter said that such an event would hurt their institution. Fifty-three percent of bankers surveyed said governments will meet their obligations.