WASHINGTON—Europe lacks the same mechanisms that the U.S. had to deal with its financial crisis three years ago, making the dangers even greater, billionaire investor and activist George Soros said.
The U.S. Treasury Department in 2008 helped devise and implement the myriad liquidity programs used to recapitalize big banks and reassure investors when questions arose over their stability and integrity of deposits.
But uncertainty over what would happen in a run on European banks has added to the volatility of the European debt crisis.
"The European crisis is more serious than the crisis of 2008," Soros said in an appearance at the meeting here of the World Bank and International Monetary Fund . "The authority needed (in 2008) was in place."
Soros, who has for many years supported various liberal political causes, has called for a number of measures to take on the European Union sovereign debt crisis, including the establishment of a unified Treasury.
"I very much hope the heads of state of the member countries will recognize that," he said. "That will open the way to containing the crisis."Page 1 of 3 | Next Page