The crisis is not just in Greece.
The new battle line may be Austria, whose banks have exposure to the sick men of Eastern Europe.
WSJ: Austria nationalized a key regional bank in a multibillion-euro bailout that offered a fresh reminder that Europe’s banks remain vulnerable to shocks, despite recent signs of economic stabilisation.
Jean-Claude Trichet, president of the European Central Bank, personally intervened in the bailout talks over the weekend, urging swift action amid concerns that Hypo Group Alpe Adria’s problems could envelop other Austrian banks and its much larger parent, BayernLB — a linchpin in Germany’s troubled state-controlled Landesbank sector.
Mr. Trichet called both Austrian Chancellor Werner Faymann and Horst Seehofer, governor of the German state of Bavaria, to ensure that Hypo was rescued, according to people familiar with the matter.