The German Bundesbank issued a new warning on the debt crisis in Greece, saying now that it could be much higher than previously reported. A recent bailout plan where the Euro Zone nations and the IMF would help Greece meet an immediate need of some 30 Billion Euros by next month may not be sufficient. The Bundesbank President, Axel Weber, said Monday that Greece may need an additional 50 Billion Euros. This announcement that Greece may need 80 Billion Euros (~$107 Billion dollars) was closely followed by a warning from the IMF that the sovereign debt of “advanced nations”.

The International Monetary Fund issued it’s semi-annual Global Financial Stability Report today. In it, the IMF warns that the Greek debt crisis could trigger a “new phase” of global financial unrest. Jose Vinals, director of the IMF’s monetary and capital markets department said today, “In spite of recent developments in the outlook and the health of the global financial system, stability is not yet assured.” While problems with investment and commercial banks seem to be resolved, the IMF is concerned about the sovereign debt of nations, which has increased to new heights not seen since WW2.

The Greek crisis is being referred to as a “wake-up call” for all nations by the IMF. Fears of a global sovereign debt contagion exist if governments do not take action to curb deficit spending and lower their debt levels. Vinals went on to blame the speculative credit default swaps that put Greece into so much trouble. He adds, however, that attempts to ban the “naked CDS”, betting on the default of a credit without any underlying interest (meaning you’re betting on somebody else defaulting, not yourself), would be difficult to enforce without international cooperation.

Goldman Sachs, which sold these toxic CDS to Greece, has come under fire in the U.S. by the SEC for a separate charge of selling mortgage-backed CDO (collateral debt obligations) to customers without informing them that hedge fund expert, John Paulson, has helped design these CDO to fail. Paulson had purchased CDS to profit from the failures of the CDO that Goldman Sachs issued. AIG, which lost some $6 Billion on such financial products, is reported to be considering suing Goldman Sachs. To help defend itself from political and public attacks, Goldman Sachs has hired Gregory Craig, former White House counselor to Barack Obama. This morning, Goldman Sachs reported higher than expected earnings and profits for the 1st Quarter of 2010.

The SEC also announced a new investigation into Lehman Brothers possible involvement in helping to cause the mortgage meltdown which led to the financial crash of 2008. Several European nations, including Germany, Greece, Spain and Ireland, are or have launched their own investigations. While some analysts point to moderation in the financial crisis, the recent announcements on Greece and sovereign debt by the Bundesbank and IMF indicate that the worse may be far from over.