Of Special Interest
- Financial wellness affects half of peoples’ mental or physical health, finds report
- Study finds traditional financial institutions embrace Fintech disruption
- Grass is greener for environmentally friendly businesses, finds Barclays
- Prospective homeowners would consider a 40-year mortgage to escape renting, finds Santander
- Millennials’ needs are changing the face of banking industry, says new report
- FS is putting consumer data at risk by failing to protect mobile apps, says Arxan
- A lack of belief in their ability holds 28% women back in work, says Cambridge & Counties
- ‘Which?’ reveals Scotland has lost over a third of its bank branches in eight years
- Next downturn unlikely to be as bad as 2008, according to S&P
- FCA reveals findings from first cryptoassets consumer research
- US consumers favour single mobile app for banking and payments
- Banks suffering major IT shutdowns every day, ‘Which?’ reveals
- The US will be a key offshore centre in 2019, says GlobalData
- Debit industry changes markedly in 10 years of the Debit Issuer Study
- UK's ‘Big Five’ face ‘too big to compete’ as small challengers secure stellar returns
- Banks as vulnerable now as before crash, says new study
- Leverage ratio a constant conundrum for European and US banks, says SNL
20th January 2012
Plan proceeding for 70-75% writedown on Greek debt?
A Le Monde report suggests that the European Union authorities may have now agreed to take the so-called voluntary writedown of Greek sovereign debt to 70% or 75%. The ACP, the French banking regulator is said to be preparing instructions to be issued to the French banks. Presumably one reason for urgency is so the banks may account for the matter within the 2011 year. The regulator nor any of the major French banks would comment on the story.
If true much greater resistance may be expected from the banks compared with last year when a 50%-60% 'voluntary' writedown was agreed.
An issue for a number of the banks with significant Greek exposure is that they would be financially better off if an official default was declared due to Credit Default Swaps or other hedging in place which can only be called if an official default is declared.