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MindMover

(5,016 posts) Fri May 25, 2012, 05:51 PM May 2012

French banks plan for Greek euro zone exit

Source: Reuters

Reuters) - French banks, which are among the lenders most exposed to Greece, have stepped up their efforts on contingency plans for the debt-laden country leaving the euro zone, sources familiar with the situation said.

The heightened preparations by banks, including Credit Agricole (CAGR.PA), BNP Paribas (BNPP.PA) and Societe Generale (SOGN.PA), come after euro zone sources told Reuters earlier this week that each member of the common currency would have to prepare a plan for a possible Greek exit.

At end-Dec 2011, total French cross-border lending to Greece was $44.4 billion (28.3 billion pounds), higher than Germany's $13.4 billion, according to preliminary Bank for International Settlements data tracking consolidated foreign claims of reporting banks on an ultimate risk basis.

"The banks are doing contingency planning concerning a Greek exit, but you can understand why they wouldn't say so publicly," a consultant to French banks said.

Read more: http://uk.reuters.com/article/2012/05/25/uk-france-banks-greece-idUKBRE84O0PC20120525

4 replies

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French banks plan for Greek euro zone exit (Original Post) MindMover May 2012 OP

Can you foreclose on a country? Gregorian May 2012 #1

That is what has essentially been happening and..... MindMover May 2012 #2

The economic hierarchy is about to see some change. Gregorian May 2012 #3

Possible effects of Euro bank failures. jerseyjack May 2012 #4

Gregorian

(23,867 posts)

1. Can you foreclose on a country?

Reply to MindMover (Original post)

Fri May 25, 2012, 06:14 PM

May 2012

I hate to make fun of it because of the serious nature.

MindMover

(5,016 posts)

2. That is what has essentially been happening and.....

Reply to Gregorian (Reply #1)

Fri May 25, 2012, 06:20 PM

May 2012

the people of Greece are deciding June 17th whether they will allow the selling of their state assets to pay creditors....the likely outcome is ?

Gregorian

(23,867 posts)

3. The economic hierarchy is about to see some change.

Reply to MindMover (Reply #2)

Fri May 25, 2012, 06:51 PM

May 2012

I saw a photoshop of a Greek flag with part of the German flag inserted. I also saw 2000 years of European country boundaries in fast motion over a few minutes period. That's sort of what we're talking about here. Greece will forfeit some collateral, and life will go on. It seems like an awful waste of resources to me. There must be a happy medium between capitalism and communism. One where people have what they want, and need, and not a whole mountain more. Oh, I don't know what I'm talking about. There probably are no good solutions. Choice is what we want. And some just want to abuse it. Who needs a helicopter and a car elevator.

jerseyjack

(1,361 posts)

4. Possible effects of Euro bank failures.

Reply to MindMover (Original post)

Sat May 26, 2012, 07:51 AM

May 2012

Remember, it is not just Greece. Italy, Spain, Portugal and maybe Ireland are also on the brink. With defaults come devaluation. That makes purchasing anything more expensive. So the citizens buy less... less of their own production and less to be imported from other nations.

That leads to a re/depression. BTW, in classic economics the difference between the two is duration. 36+ months of decline in gross national product is a depression. Less than that is a recession.

But back to the point. Many U.S. banks are also invested in the above nations. We may end up bailing out some of those.

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