Eurozone debt crisis 'most serious and immediate' threat to UK

Originally posted by 5corpio

The debt crisis enveloping the eurozone is "the most serious and immediate" threat to the British economy, according to the first report from the UK's Financial Policy Committee.

Sir Mervyn King, Governor of the Bank of England and one of the founder members of the Committee, said the worsening financial problems of several European countries risked damaging British banks, even if they had little or no exposure to their indebted economies.

"Experience has shown that contagion can spread through financial markets especially when there is uncertainty about the precise location of exposures.

"A UK bank could have lent to a bank that itself had lent to a bank in turn was exposed to sovereign risk," said Sir Mervyn.

In a wide-ranging 50-page report, the FPC was clear that the...Click HERE to read more on this article