BlackRock's Fink: Europe will need a 'giant TARP'

BlackRock's chief executive has warned Europe needs its own US-style Troubled Asset Relief Program (TARP) as the sovereign debt crisis continues.

Laurence Fink, head of the world's largest asset manager with £2.2trn under management, said Europe is going to need a "giant TARP," referring to the facility the US introduced to rescue financial firms. Speaking to Bloomberg, he said restructuring Greek debt would automatically translate into restructuring other peripheral countries' finances, which would put at stake the EU banking system itself. "The banking system in Europe owns all this debt," Fink said. "If we restructure one country, we are basically putting huge capital stress on these banks. Before we restructure any country,...