Citigroup warns of fresh wave of bank failures in Europe

Same story, two headlines/datelines from Ambrose Evans-Pritchard at the Telegraph:

By Ambrose Evans-Pritchard, International Business Editor 7:33PM GMT 21 Dec 2010
Citigroup has warned of a fresh wave of bank failures and sovereign defaults in Europe unless EU leaders come up with a credible response to the crisis.

Prof Willem Buiter, the bank's chief economist, said the eurozone was paralysed by a "game of chicken" between the European Central Bank and EMU governments.

Both sides are trying to shift responsibility on to the other for shoring up southern Europe and Ireland, raising the risk of contagion spreading. "The market is not going to wait until March for the EU authorities to get their act together. We could have several sovereign states and banks going under. They are being far too casual," he said.

Mark Schofield, Citigroup’s global head of interest rate strategy, said Portugal would need an EU rescue soon and that it was "highly likely that Spain will go the same way". This risks overpowering the €440bn (£373bn) bail-out fund....MORE

And the longer version:
Citigroup fears fresh wave of sovereign defaults and bank failures in eurozone
By Ambrose Evans-Pritchard, International Business Editor 6:18AM GMT 22 Dec 2010