I suspect that what Stark fears is that numerous banks in France, Germany and the UK will have losses that will expose the state of their balance sheets, precipitating a contagious collapse of the financial house of cards. If your balance sheet is underwater, not only do you not want to see more losses, but also you cannot accept exposure of previous losses. The fear is that a restructuring would lead to a series of events that leave them all exposed as bankrupt.

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."