Greek Banks Suspend Merger Talks

[bemildred]

ATHENS — Shares in National Bank of Greece and Eurobank plummeted 30 percent Monday after the two banks suspended merger talks because they were unable to raise the required capital.

The move followed reports that the international lenders overseeing a bailout of Greece had feared the creation of a megabank that would be too big to fail. It came as concern grows in Europe about the threat posed by large banks in small countries in the wake of the banking crisis in Cyprus.

The new bank would have been the biggest in Greece, with assets of around 180 billion euros, or $234 billion. Greece’s gross domestic product was around 190 billion euros last year and is expected to contract 4.5 percent in 2013.

http://www.nytimes.com/2013/04/09/business/global/national-bank-of-greece-and-eurobank-suspend-talks.html

[dipsydoodle]

1. assets of around 180 billion euros

and doubtless more or less the same in liabilties i.e not worth a light.

[bemildred]

2. Apparently the money from Cyprus was not enough or something.

Tsk, tsk.

[dipsydoodle]

3. What they did do

aside from giving Cyprus a haircut was to buy their branches of Cypriot banks the week before last. When I say bought them that's less than a half truth - they bought the assets : not the liabilities which went with them.

As far as I'm concerned Greece having fucked Cyprus can go fuck itself now.

[bemildred]

4. Oh I quite agree. nt

[dixiegrrrrl]

5. The Greek banks sold a lot of their debt to the Cyprus banks

which created the Cyprus problem.
Financial hot potato, as it were.

wonder if Greece has drawn up plans for a bank "bail-in"?
Certainly this failure to merge should make depositors very very nervous.