Tuesday, May 4, 2010
France could be in big trouble!
French banks have the greatest exposure to Greece with about $80 billion--or a little less than half the total exposure--of all European banks' claims on Greece. Credit Agricole and Societe Generale are among individual European banks most exposed to Greece's financial crisis.
With no credible deposit insurance in France, or for that matter in Europe, bank runs are a distinct possibility. A total payments crisis is not out of the question for France and the rest of Europe.