Mitchell: Greece debt could infect Euro banking system

Aegon manager warns of possible knock-on effect from struggling European countries

Aegon’s Melanie Mitchell warns the financial problems of Greece and other countries could lead to a systemic infection of the European banking system. The fixed income manager believes if struggling countries, such as Greece, default on their external debt it could have a knock-on effect on the bond holders, with banks in Germany, France, the UK, Switzerland and the Netherlands bearing the brunt. If such defaults were allowed to happen, says Mitchell, banks in those economies would likely have trouble funding themselves, either via deposits or in the wholesale markets, because of a la...