Greek leader considers action against US banks

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Greek leader considers action against US banks
Greek leader says legal action against US investment banks possible for role in debt crisis
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Greek Prime Minister George Papandreou arrives at the cabinet meeting in the Greek Parliament in Athens, on Monday, May 10, 2010. At a cabinet meeting Monday, the center-left government is set to approve key pension reforms, cutting payments and increasing retirement ages.Near-bankrupt Greece's borrowing costs fell sharply Monday and stocks rallied after the European Union unveiled a $1 trillion plan to contain the continent's spreading debt crisis and boost the euro. (AP Photo/Petros Giannakouris)

Greek Prime Minister George Papandreou arrives at the cabinet meeting in the Greek Parliament in Athens, on Monday, May 10, 2010. At a cabinet meeting Monday, the center-left government is set to approve key pension reforms, cutting payments and increasing retirement ages.Near-bankrupt Greece's borrowing costs fell sharply Monday and stocks rallied after the European Union unveiled a $1 trillion plan to contain the continent's spreading debt crisis and boost the euro. (AP Photo/Petros Giannakouris)
On Sunday May 16, 2010, 9:28 am

ATHENS, Greece (AP) -- Greek Prime Minister George Papandreou is not ruling out taking legal action against U.S. investment banks for their role in creating the spiraling Greek debt crisis.

Papandreou told CNN on Sunday that "I wouldn't rule out" going after the U.S. banks.

The government, as well as many Greeks, have blamed international banks for fanning the flames of the debt crisis with comments about Greece's likely default.

The Greek leader also says a parliamentary investigation will soon examine the rapid swelling of Greece's debt and the country's banking practices.

The European Union and the International Monetary fund have approved a euro110 billion ($136 billion) bailout package for Greece.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.

BERLIN (AP) -- The chief economist of a German bank is quoted as saying that he doubts Greece's ability to repay its huge debts in an orderly fashion.

German news website Handelsblatt on Sunday reported that the Dekabank's chief economist shares the doubts voiced by Deutsche Bank AG's Chief Executive Josef Ackermann on Thursday.

Ulrich Kater was quoted as saying: "It will be very, very difficult for Greece to orderly repay its debt."

He said the country's new austerity measures and its lack of competitiveness were dooming Greece's prospects for economic growth, making debt reduction difficult.

Ackermann, CEO of Germany's biggest lender, caused outrage and nervousness on already jittery markets by publicly doubting Greece's ability to repay its debt and mentioning the possibility of a debt restructuring.