Greek bank stocks basically just behave like broader European markets, except in an extremely high-beta exaggerated manner.Today Europe is getting smoked. So Greek bank stocks are getting killed.
Piraeus Bank is off 10.5%. National Bank of Greece is down 4%. Alpha Bank is down 5.7%.
Anyway, in addition to the political problems, the country is quickly running out of cash again.
Dow Jones FX Trader cites a news report saying that PM Papademos has warned that the country will face a cash flow situation in early June. That’s even before a new election, if there is going to be one.
The country desperately needs outside cash. The impetus to form a government now, and not go through all the uncertainty again is massive.