PIMCO's Mohammad El-Erian says we're on the verge of a European banking crisis.
El Erian told Bloomberg Surveillance:
“We’re getting close to a full-blown banking crisis in Europe... We are in a synchronized global slowdown. There’s very little confidence in economic policy making both in Europe and the U.S.”
“The light should be flashing yellow, if not red, in Washington, D.C., and hopefully the IMF meeting can be the catalyst for getting to a common analysis and setting the stage for the G-20."
The IMF needs to act with European banks at risk of being engulfed in the region’s sovereign-debt crisis, according to El-Erian.
That puts the spotlight on French banks, which will be among the worst hit if Greece defaults. France has $57.6 billion in exposure to Greek creditors, more than any other nation.
The first sign of a Euro banking crisis was Deutsche Bank CEO Josej Ackermann's speech last weekend. He said European banks would not survive if assets were marked to market.
And the countdown to a Euro bank bailout marches on.
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