Greek default fears slam banking sector

LONDON (AP) — Fears of a Greek debt default and signs of division among Europe's policymakers over how to manage the debt crisis sent bank stocks sharply lower on Monday, raising worries about the sector's health.

Senior German politicians have suggested publicly in recent days that an orderly bankruptcy of Greece may be part of a solution to the country's problems. The notion, which has been a taboo so far in Europe's handling of the crisis, spawned uncertainty in financial markets, in Europe and elsewhere.

The Stoxx 50 index of blue chip European shares dropped 2.6 percent with many of the continent's leading financial groups, such as Deutsche Bank and BNP Paribas, at one …