A Greek exit from the euro area would be “a controlled event for the rest of Europe,” said Hamid Biglari, Citigroup Inc. (C:US) vice-chairman in charge of emerging markets.
“The European Central Bank has done much to limit the risk of contagion,” Biglari said in an interview with Bloomberg HT television in Istanbul today.
Greece’s political leaders held a fifth day of talks to carve out a government. The standoff has reignited European concerns over Greece’s ability to hold to terms of its two bailouts negotiated since May 2010 and sparked concerns about the country leaving the euro.
Greece’s withdrawal from the euro would be “very bad for its banking system and economy,” Biglari said. The situation is “uncertain, with many possible outcomes and too many variables,” he added.
The effect on Citigroup of Greece’s exit “wouldn’t be that large,” Biglari said. “We at Citi have negligible exposure to the periphery.”
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