SocGen Takes €333 M Hit on Greek Exposure, Increases Loan Loss Reserves to 60%

The European banks are finally starting to face reality.   Provisioning against potential losses is the first step toward a comprehensive restructuring and final solution to the European debt crisis.   Taking losses,  suspending dividends, and limiting bonuses are painful for the banks but a necessary step in the right direction.

Societe Generale also announced it sold over €10 BN of legacy assets between July 1st and November 1st and has reduced its GIIPS [PIIGS] sovereign risk exposure to €3.4 BN.   This would never have occurred  if the banks thought the bailouts would continue without any private sector involvement.   The incrementalism of Merkel, the physicist,  continues.

This entry was posted in Black Swan Watch, Equities, Euro, PIIGS, Sovereign Debt, Sovereign Risk and tagged , . Bookmark the permalink.

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