Fink on Greece's Debt Crisis
Renewed concerns over Greece's budget situation dampening the mood on Wall Street today, but the Dow did manage to erase most of the losses in the final hour of trading.
One of Wall Street's most respected minds, Larry Fink, Chairman & CEO of BlackRock joined Maria Bartiromo on Closing Bellafter the market's close to share his thoughts on the economic environment.
Fink started by saying that the situation in Greece "is very serious" and that it's "very destabilizing for the entire European community."
His recommendation - a public/private solution.
He thinks that "there would be a large pool of private capital to invest in Greece, if we knew that there was public support through public funding, and more importantly, a super body, making sure that the austerity plan with Greece works."
Fink did not think the IMF would be a very likely player in any Greek solution but says "the ECB will have to play a much larger role in this."
He added that Greece raising $5-10B of assets of debt isn't as successful as doing a large offering of perhaps $30-40B with the involvement of both the government and private investors.
Back to Wall Street and the future of financial regulation, Fink said the uncertainty around job creation and banks has to do with banks' reluctance to lend because "they're not certain as to what the capital requirements in the future and that lending is putting some pressure in the labor markets."
Liza Tan contributed to this article.
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