European banks' exposure to Greek debt erodes market confidence

"They don't know which banks are sitting on which debt, so they are becoming increasingly loathe to loan to European banks," said Simon Tilford, chief economist at the London-based Centre for European Reform. … But Tilford says the move is not enough. "All it does really is provide liquidity and that's useful, but the underlying problem is essentially a solvency one, in that there is an awful lot of debt that's going to get written off in Europe and that is going to impose very, very considerable losses on financial institutions," he said.