“An erosion of confidence, lower asset prices and tighter credit conditions are further damaging the prospects for economic activity and will affect the ability of companies, households and governments to repay their debts,” threatening banks’ balance sheets, King told reporters in London today. “This spiral is characteristic of a systemic crisis.”
http://www.bloomberg.com/news/2011-12-01/king-says-spiral-facing-banks-looks-like-a-systemic-crisis-.html

King warns of ‘spiral’ into systemic crisis

“The crisis in the euro area is one of solvency not liquidity. And the interconnectedness of major banks means the banking systems and economies around the world are all affected. Only the governments directly involved can find a way out of this crisis,” he said.
http://tinyurl.com/7p3drne

Britain Sounds Alarms on Crisis

Mr. King said provisions of liquidity—such as the concerted central bank action taken by the BOE, U.S. Federal Reserve and other major peers Wednesday—won't solve the euro zone's problems in the long term because the issue is one of solvency, not liquidity.
He called on euro-zone policy makers to take action as it is beyond the control of U.K. authorities to resolve the crisis. But the U.K. is drawing up contingency plans in the event of a euro-zone breakup.
http://tinyurl.com/7qftmrz

Bank of England governor warns UK banks to prepare for eurozone collapse - video
http://www.guardian.co.uk/business/video/2011/dec/01/bank-of-england-governor-eurozone-video?newsfeed=tru
e