Ahh, Here's What's Making European Bank CDS Explode

As we said yesterday, everyone in Europe is worried about sovereign debt and who has it on their books.

Now its obvious that some banks have more than others, with French banks stepping forward to tell their story.

From Le Monde:

  • BNP Paribas has €5 billion ($6.36 billion) in exposure to Greek debt
  • Societe Generale has €3 billion ($3.82 billion) in exposure to Greek debt
  • Banque Populaire has €1.78 billion ($2.27 billion) in exposure to Greek debt
  • Credit Agricole has €850 million ($1 billion) in exposure to Greek debt

Worries about this exposure have made European bank CDS widen for the exposed.

Chart via FT Alphaville, from Markit

Euro Financial CDS May 7

CDS on RBS is surely moving because of UK election uncertainty, but the French banks and Deutsche Bank are likely making moves based on contagion fears.

Santander’s widening is significant, and that may have to do with debt auctions in Spain, where the government forced private banks to buy public bonds, according to FT Alphaville.

The concern right now is Greek debt, but that will grow to Portuguese and Spanish debt if the EU can’t find a solution to the crisis.

Now check out who could be the next victim of European debt contagion >

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