Europe Seeks To Get Banks On Board Greek Bail-out

By Gernot Heller and Lionel Laurent

(Reuters) - European governments are trying to persuade banks and insurers to share the pain of a second Greek bailout package, in an attempt to avoid market meltdown while keeping taxpayers happy.

Talks between governments and creditors will begin across the euro zone on Wednesday, a source in the German government said. The European Union bloc agreed last week that any such participation could only be voluntary.

"The (German) finance ministry has invited banks and insurers for talks on a working group level in Frankfurt," the source said, adding that all relevant banks and insurers in Germany that could contribute would take part.

Separately, the French insurers' association FFSA said its head Bernard Spitz had been summoned to the finance ministry on Wednesday to discuss the Greek debt situation.

"Yes, he is there right now," a spokesman said.

(Read on...)