Skip to comments.Moody's Warns On French Banks, Eyes Other Euro-Zone Banks (may downgrade them)
Posted on 06/15/2011 7:34:00 AM PDT by TigerLikesRooster
JUNE 15, 2011, 9:09 A.M. ET
Moody's Warns On French Banks, Eyes Other Euro-Zone Banks
By Elena Berton
Of DOW JONES NEWSWIRES
PARIS (Dow Jones)--Moody's Investor Service warned Wednesday it may downgrade French banks because of their high exposure to Greece, saying the net could soon be widened to include banks elsewhere in the euro zone as European officials struggle to agree a new Greek aid package.
France's three largest banks by market value, BNP Paribas SA (BNP.FR), Credit Agricole SA (ACA.FR) and Societe Generale SA (GLE.FR), were put on review for possible downgrades over the potential impact on earnings of a Greek debt restructuring.
Although Moody's said its stance reflected its downgrade of Greek government bonds and Greek banks earlier this month, the move followed a meeting of European officials in Brussels that failed to agree the terms of a second aid package for Greece and came amid heightened fears about the prospect of a disorderly Greek default. Sharp disagreements between European policymakers, mainly between Germany and the European Central Bank, over how to get private creditors to contribute to close Greece's financing gap could delay a decision on a new multiyear aid package for weeks.
France stands alongside the ECB in insisting that a Greek bond default must be avoided and favors a scenario under which holders of Greek debt would voluntarily roll it over into new bonds when it matures. Germany has backed a solution involving a bond swap, which could ultimately be considered a default by ratings agencies.
(Excerpt) Read more at online.wsj.com ...
It’s quit feeling like my country - now it’s starting to feel like it’s not my world...
This action is but a part of the international consensus to devalue all major currencies.
Here now, There later, elswhere in between.
Prices will rise, then wages will rise and thereby taxes will rise.
Between devaluation of the debt and an increase in marginal revenue, the debt will be handled.