– PREPARE FOR END OF THE EURO, BANKS TOLD (Express, Dec. 1,2011):
ALARM at the economic turmoil in Europe intensified last night after the Government admitted preparations for the chaotic collapse of the euro were being “stepped up”.
Downing Street is understood to be embroiled in intensive “contingency planning” for Greece and possibly Italy, Spain and Portugal quitting the eurozone.
British banks have been urged by the City’s watchdog to brace themselves for the collapse of the single currency.
The Financial Services Authority warned that the unravelling of the 17-nation eurozone could wreak havoc on the UK banking system.
City sources said Hector Sants, chief executive of the FSA, made the plea at a crisis meeting with senior bosses from high street banks.
And, in a sign of growing panic, a senior French politician warned the crisis could trigger “the return to violent conflict” in Europe.
Alain Juppe, France’s foreign minister, added: “It could be the explosion of the European Union itself.”