Who In the Private Sector Will Bailout Greece?

Loading...
Loading...
On Friday, French President Nicolas Sarkozy hinted that there may be private sector involvement in a new deal to bailout the Greek government, according to
Dow Jones
. Exactly who in the private sector is willing to come to Greece's aide? Especially considering that the country will require cash infusions amounting to billions of dollars. To answer that question, investors should consider which private institutions have the most to lose. Some have speculated that if Greece withdraws from the euro, it would spell doom for the currency, as other debt-troubled nations exit in similar fashion (a financial contagion). If the euro fails, euro member-states may have to return to their old currencies. Germany's economy is booming, relatively speaking, and is export-led. If Germany returned to the Deutsch Mark, it may find itself with a significantly stronger currency. That might be economically disastrous for Germany's businesses that rely on exports such as Siemens
ADR
. Financial institutions with significant European holdings may find themselves in trouble, too, should Greece exit or restructure its debt. Such institutions may include Royal Bank of Scotland
RBS
and Deutsche Bank
DB
. Of course, the U.S. economy has significant European exposure, and U.S. banks like Bank of America
BAC
and J.P Morgan Chase
JPM
may have a vested intrests in ensuring that Greece is able to meet its obligations. It is possible investors will return from a long weekend on Tuesday to find a new deal in place for the Greek government. If that is the case, it will be an interesting start to the holiday-shortened week.
Loading...
Loading...
Market News and Data brought to you by Benzinga APIs
Posted In: Long IdeasShort IdeasFinancingMovers & ShakersPreviewsPoliticsForexGlobalEconomicsMarketsTrading IdeasDow JonesNicolas Sarkozy
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...