''Eurozone banks nearly collapsed, says ECB director''

From The Guardian

''The concern about the state of the banking system led to €1tn being lent to banks through three-year loans and came as UK banks were told to make preparations for a potential exit of countries from the single currency.

In November Andrew Bailey, the Financial Services Authority's top regulator, told banks: "We must not ignore the prospect of the disorderly departure of some countries from the eurozone."

Those contingency plans are now being dusted down amid speculation over a Greek exit. British banks have taken steps to reduce their exposure to Greek government bonds and other loans.''

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