Greece, Again

It’s not just the Greek banks that have been spooked by National Bank of Greece’s cash call and attendant fears of government debt restructuring, reports FT.


French banks Société Générale and Credit Agricole, which have large holdings of Greek government debt and/or Greek banking businesses, are under pressure on Wednesday morning.

Nouriel Roubini, correctly, continues to call for an orderly Greek debt restructuring:

It is time to recognize that Greece is not suffering only from a liquidity crisis ­— it is also facing an insolvency crisis — thus an orderly restructuring of Greece’s public debt, rather than an EU/IMF bailout that only delays such restructuring and risk making it disorderly, is the appropriate policy response now.