Although it is the responsibility of Greece's central bank to close a struggling lender, the EU's executive also has a say under state-aid rules, which allow it to refuse a request to rescue a bank if the Commission considers it too costly to save—effectively forcing the bank to be wound up.
Former Greek prime minister Lucas Papademos warned on Thursday that the fallout from a Greek exit from the euro area would be disastrous and its continued membership in the common-currency bloc must be pursued by the next government elected in the June 17 election.
Elsewhere, Fitch warned the U.S. it faces a sovereign rating downgrade next year if the White House and Congress fail to come to grips with the budget deficit and create a "credible" fiscal consolidation plan.
Federal Reserve chairman Ben Bernanke said on Thursday that the U.S. central bank was ready to shield the economy if financial troubles mount, but offered few hints that further monetary stimulus was imminent.
He told Congress the Fed was closely monitoring "significant risks" to the U.S. recovery from Europe's debt crisis but struck a decidedly different tone from the central bank's No. 2 official, Janet Yellen, who argued in favor of monetary support on Wednesday.Page 3 of 5 | Prev Page | Next Page