Could Greece be the next Lehman Brothers? Yes – and potentially even worse
If Athens reneged on its debts it would shatter the markets’ confidence in the eurozone project
By Larry Elliott
It was less than three years ago that the failure of Lehman Brothers sent tremors through the global financial system, threatening the existence of every major bank and triggering the most severe economic crisis since the Great Depression. As Europe’s policy elite met for fresh crisis talks today, the dark fear that haunted everyone around the table was this: if the bankruptcy of a middling-sized Wall Street investment bank with no retail customers could have such dire consequences, what would happen if the Greeks decide they have had enough and renege on their debts?