Decision to quit fuels speculation that central bank policymakers are split amid fears that Greece could defaultIT'S GONNA GET A HECK OF A LOT WORSE BEFORE IT GETS BETTER.
European Central Bank (ECB) governing board member Jürgen Stark, who has resigned, lobbied for the ECB to impose stricter measures on Greece and Portugal. Photograph: Aris Messinis/AFP/Getty Images
The dramatic resignation of a senior European central banker sent stock markets plunging, amid fears that Greece is on the brink of default and the fragile consensus in Berlin over support for the ailing Italian and Spanish economies was close to disintegration.
Bank stocks, down more than 5% in some cases, were the worst affected as the Dow Jones dropped almost 3% to below 11,000. European exchanges joined the panic with the FTSE falling more than 100 points to 5230. Speculation that several French and German banks would soon embark on massive capital raising schemes to offset write-offs on holdings of Greek debt, added to the febrile atmosphere.
DELAY AND DENIAL ARE MAKING IT HARDER TO DO THE INEVITABLE: UNWIND THE EU AND THE EURO.