Wednesday, June 22, 2011

'Greek crisis threatens world fin. system'

US Federal Reserve Chairman Ben Bernanke

Source: Press TV

US Federal Reserve Chairman Ben Bernanke has warned that if no solution is found to the Greek debt crisis, the stability of the global financial system could be threatened.

Bernanke made the remarks, when asked to comment on the Greek crisis, at a press conference following the Fed's policy meeting on Wednesday, AFP reported.

"If there were a failure to resolve that situation, it would pose threats to the European financial systems, the global financial system and to European political unity," he said, adding that it is one of the many potential risks that the world is faced with today.

Bernanke stressed that if a country would default, then this would “no doubt roil financial markets globally,” which would have a significant impact on security markets and consequently affect the US.

However, he did also emphasize that the Fed has not been involved in the negotiations taking place to resolve the crisis, but that they have been in close communications with their European counterparts, and have therefore been “kept well-informed.”

"We are mostly just following the situation closely and making sure as best we can that our own institutions are well-positioned relative to sovereign debt in the so-called peripheral countries," he said

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