ECB member says Greek restructuring would be worse than Lehman

European Central Bank Executive Board member Jose Manuel Gonzalez-Paramo said a Greek debt restructuring would be ‘more devastating’ than the collapse of Lehman Brothers Holdings.

?It would very probably have systemic effects with consequences that are difficult to calculate now but quite likely more devastating than the catastrophe of Lehman Brothers,? Gonzalez-Paramo told reporters on Tuesday in Cordoba, Spain, Bloomberg reported.

?It would affect the balance sheets of institutions and very possibly affect the confidence in the banking system and in the capacity of sovereigns to face up? to their commitments, he said.