There's A Report About Greek Bondholders Being Asked To Take An Even Bigger Haircut


Photo: Robin Zebrowski on Flickr

A top official at the European Central Bank said off the record that the ECB/EU/IMF troika could require private holders of Greek bonds to accept a 75% haircut rather than the 21% they were expected to take, according to Italian newspaper Linkiesta (via @FGoria).This matter could be discussed at an October 3 Eurogroup meeting, though it probably won’t appear on the official agenda.

Such a revision would seriously injure European banks that are struggling to maintain healthy capital levels. Whispers about euro-TARP like plans to recapitalize the European banking sector spurred on markets earlier this week.

Meanwhile, French banks — probably some of the most vulnerable to such a haircut — took a tumble on that news in U.S. markets:

SocGen: -7.00%

Credit Agricole: -6.78%

BNP Paribas: -4.64%

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