JPMorgan, Barclays cut Greek exit odds as Goldman-Citi hold

[unhappycamper]

http://www.ekathimerini.com/199026/article/ekathimerini/business/jpmorgan-barclays-cut-greek-exit-odds-as-goldman-citi-hold



JPMorgan, Barclays cut Greek exit odds as Goldman-Citi hold
SIMON KENNEDY AND DEBORAH HYDE
BUSINESS 12:48

Economists from JPMorgan Chase & Co. to Barclays Plc made a Greek departure from Europe’s monetary union their base scenario, while those at Goldman Sachs Group Inc. and Citigroup Inc. saw ways it can remain within the bloc.

Investors are re-examining the odds on Greece’s membership of the euro after voters used Sunday’s referendum to reject the austerity needed to secure international aid. Even so, predictions of a so-called Grexit over five years of crisis have so far come to nothing as European authorities have regularly acted to keep the bloc whole.

“Although the situation is fluid, at this point Greek exit from the euro appears more likely than not,” Malcolm Barr, an economist at JPMorgan in London, said in a report to clients on Sunday, adding it could come “under chaotic circumstances.”

With Greek banks running out of euros after being shut in the run-up to the plebiscite and capital controls in place, Prime Minister Alexis Tsipras’s government has just a “handful of weeks” to negotiate a new aid deal, Barr said.

[Turbineguy]

1. These guys stand to make billions

off of their default swaps. If Greece were able to pay these banks would be in trouble. I love how JP Morgan analyses things. JPM advised the Greeks on how to get into this mess.