With European banks under pressure, recession isn't out of the question — but the current panic is overdone, one expert told CNBC.
"The bigger issue right now for the global markets is confidence that Mario Draghi ... and the [European Central Bank] are providing the liquidity that's necessary," Bob Diamond, former group chief executive of Barclays, told CNBC's "Closing Bell" Wednesday.
There is a chance of two consecutive quarters of of contracting economic growth, Diamond said. The situation is not as dire as during the last recession, he said. But as the dollar becomes more globalized, central banks, including the Federal Reserve, will have to shift past focusing just on the local economy, he said.