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

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):

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

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

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:

What is the acronym now?  PFIIGS?

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