BANK PREPARATIONS FOR A EURO DEFAULT. Gillian Tett says that banks are apparently making some secret contingency plans to deal with a euro breakup—plans that are kept secret just as the plans to deal with a U.S default were kept secret last year. Although there is an estimated 20% to 25% probability of a default event for the Euro, and although the default would be more serious than the “technical default” that the U.S. was facing (and may yet face again), Gillian Tett reports that apparently the preparations by European banks for a Euro default are less extensive than they were for the possible U.S. default. She thinks that European leaders would do well to study the planning that was made for the dollar.

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