Rise of the PFIIGS and Fitch Warns of Trouble for U.S. Banks

November 17th, 2011
in econ_news

eu-and-us-flags Econintersect: Stocks fell going into the close after Fitch Ratings put out a report at 3:30 pm Wednesday (November 16). Financial stocks were especially hard hit as the Fitch warning said that U.S. banks could take a big hit if Europe’s debt crisis spreads. The U.S. exposure to foreign claims from Europe is only 9.5% of the total; German (36%), French (26%) and UK (18%) banks have much greater exposures, as reported by Elliott Morss (GEI Analysis):

Follow up:

elliott-bank-foreign-claims

The summary of biggest volumes, gains and losses after the market close Wednesday is shown below, courtesy of Gary at Econintersect Live Market:

gary-market-hilites

The spread of French debt to German has exploded in 2011, as this graph from Agora Financial shows:

 

french-debt

 

And now the CDS for French sovereign debt cost more than third world countries, such as Panama and the Philippines and premiums are approaching thaose for Khazakistan, again shown in a graphic from Agora Financial:

 

french-debt-cds

 

What is the acronym now?  PFIIGS?

Sources: ino.com (AP), GEI Analysis and Econintersect Live Market









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1 comment

  1. Ole C G Olesen says :
    *----


    EUROPEAN BANKS CLAIMS ON US BANKS : 3,776 TRILLION USD

    USA BANKS CLAIM ON EUROPEAN BANKS :
    1,439 TRILLION USD

    DIFFERENCE : 2,337 TRILLION USD

    CONCLUSION : 2,337 TRILLION USD OWED BY US BANKS TO EUROPEAN BANKS

    SOURCE : BANK OF INTERNATIONAL SETTLEMENTS , OCTOBER 2011





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