Australia's most powerful bankers have had their say and it's not pretty. We're headed for GFC mark II, say the Money Movers, and the fallout from the European debt crisis could be felt globally.
Outgoing Commonwealth Bank CEO Ralph Norris, recently named our third most powerful Money Mover, told Fairfax press that global credit markets "effectively froze" this week when Germany managed to sell only two-thirds of the €6bn worth of bonds it put up for sale.
''This has potential to be significantly worse than the Lehman Brothers collapse and the subprime crisis because now we are talking about nation states,'' the buck-toothed Kiwi said.
''If you have a situation like you had today, where markets had effectively frozen, then it doesn't matter how good your name is, you are not going to be able to access markets. As of today, no banks could access these markets.''
RBA boss Glenn Stevens, who took out the No. 2 spot in our Money Movers list, said in a speech last night that time was running out for the Euro zone to find answers to its debt woes.
"The issues (in Europe) are pretty serious, and I think we are fast coming to the point where all the parties who have a role to play in getting to the solution really have to hurry up and do it," he said.
Westpac chief Gail Kelly, number five on the power list, also expressed her fears about the ability of Europe's regulators to solve the spiralling problem.
''What's happening in Europe is a major concern and not improving," she told Fairfax press. "The various authorities in Europe actually have the capacity to deal with these issues - I certainly wish they'd get on with it and do it."