Leaviss: Greek euro exit would trigger 'horrifying' run on banks

If Greece leaves the euro, banks across the Continent will suffer "horrifying" consequences, with a run on banks worse than anything seen before, said M&G's bond star Jim Leaviss.

Delivering a warning to politicians in Europe, Leaviss said Greece should be allowed to default rather than exit the euro in order to save the financial system from an even greater crisis. "Greece can default but it must not leave the euro," Leaviss said. "If it does we will see runs on Europe's banks that dwarf what we have seen so far." Leaviss, head of retail fixed interest and manager of the £305m M&G UK Inflation Linked Corporate Bond fund, said the steps taken so far in Europe are not enough to avert a breakup. "The consequences of a eurozone breakup are horrifying, and the c...