Zero Hedge reports.
…when it comes to downgrade reviews the rating agencies are notorious for being as unpredictable in their timing as they are conflicted in their rating: for example even though Belgium was supposed to be downgraded months ago due to the fact that it continues to be the longest running modern anarchy, nothing has occurred, as political interests are obviously pushing the raters to do as paying clients request, not as reality demands. Alas, for France, which is very sensitive to any inkling it may have a less than sterling rating (due to its sovereign AAA requirement without which the EFSF/ESM falls apart), the luck may have run out. Bloomberg reports that the abovementioned banks “may have their credit ratings cut by Moody’s Investors Service as soon as next week because of their Greek holdings, two people with knowledge of the matter said.
The fall of the Euro may be imminent. Place your bets accordingly.
Cross Posted at Power and Control
Comments
3 responses to “The Trouble With French Banks”
The good news is that a Greek vacation next summer will be very cheap for those holding USD, pounds, CDN, and the Neue Deutschmarks.
The Greeks working at tourism jobs will LOVE the Americans, Brits, Canadians, and Germans.
There are those here in France who think that the four main banks will have to be bailed out again and then nationalised.
There is talk that the Euro block will split, with a northern rump composed of German,The Netherlands, Denmark and Finland keeping the euro and the rest, including France dropping out.
My #1 daughter visited France this summer on an engineering co-op scholarship. She is very much a Francophile. Speaks the language even.
But she is too young to be interested in politics.