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?
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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the bigger the bank, the less likely it is that the government will let it fail. So, if you are with a big french bank, then I wouldn't worry too much.
They have seen what has happened with lehman brothers and don't want that to happen again.
I'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.
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?
haha, 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.
haha, 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.
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I was talking about government insurance like FDIC.
I'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.
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6 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 debt that is covered by CDS?
On a personal note, if you ever worry about SocGen, go have a look at their trading floor in London or go see Fimat.
If you are not sure how CDS works, SocGen was the greatest beneficiary out of the US bailout plan for a EU based bank after AIG was bailed out, they actually made a profit out of AIG defaluting, and will probably do so again out of the Greek default, I can pretty much guarantee you that the FI boys there are heavily short on Greek debt......they probably already made a multiple of their exposure.
6 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...
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Thanx, appreciate the answer, i know from eur thread that you're good at fundamentals which i totally lack of......and when is money on the line never enough caution.
Damn, 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.
Good......and if it gets too hot i guess French could just bail them out with tax payers money, i mean if they can do it with Greece why not with their own banks .
Damn, 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.
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Do not think that the EU (mostly France and Germany) won't prevent the default.
Otherwise it will be a disaster
.