French banks are holders of most of the Greek debt, so i was wondering if Greek would default is it safe to hold money in French bank or that would be a signal to get out of the money from bank?
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DislikedFrench banks are holders of most of the Greek debt, so i was wondering if Greek would default is it safe to hold money in French bank or that would be a signal to get out of the money from bank?Ignored
Dislikedhaha, you gotta be kidding me. Yeah, under normal circumstances that would be insured. But if major banks fail, then the major insurance companies will fail as well, cause they don't have so much cash to pay all the failing banks for the loss of greek credit.
Your only hope is that the government will pump in tax payers money again.Ignored
DislikedI'm with Societe Generale, the bank is big, but also it is very exposed to Greek's debt, it holds over $ 6 billion in Greek bonds, so not sure what's gonna happen with it if Greek defaults.Ignored
Disliked6 billion is peanuts. Socgen's prop shops do that every few minutes.
Private participation in last weeks deal is limited to 37Bn, between all the private bondholders, they will take a haircut of around 7%, so SocGens exposure directly with a "technical" default would be at the most 40 mill, absolute peanuts. They hold CDS to cover anyways so they will just claim that back. Even if they held no CDS, they can make that back in a few weeks.
They made a profit of 900Mn in the first 3 months and you worry about a few pennies held in Greek...Ignored
DislikedDamn, i'm getting nervous with these talks about Greek default and hammering stocks of French banks on market, not sure anymore how bad is gonna affect them. This is crazy month.Ignored