This is an excellent, but technical argument, that shows the affect of cross border bank lending as the cause of the problems in the banking system. Cross border bank lending is shown to be a problem in the US as well as in the eurozone. It enabled the subprime bust in the US and it fueled the housing bubbles in Ireland and Spain.
European banks played a role in fueling the housing bubble in the US by taking advantage of the shadow banking system. US subsidiaries borrowed money from US money market funds and sent the money to headquarters. They purchased mortgage backed securities from US investment banks which funneled the money back to the US. When those assets declined in value it made credit tight in Europe and required government intervention to salvage the banks. A similar process in underway in the eurozone. Bank losses on sovereign debt will make credit difficult within the eurozone as well as in the US and in Eastern Europe which borrows heavily from eurozone banks.