The focus this week has been on the threat of Hungarian contagion to some of Western Europe’s top banking companies, but Hungary is just the beginning. Romania and Bulgaria too pose a threat to European banking stability, because of their interconnectedness with the broader banking system, according to Jeff Borack of Kerrisdale Capital ( via Zero Hedge ). Countries that need to be concerned about their exposure to Romania and Bulgaria include Greece, Austria , and Italy. The reality is any that this problem is systemic, that if one of the country’s in Europe was to default or face a severe haircut, the carry on effect would be significant to the banking sectors of Austria, Greece, France , or Italy (and potentially others). Check out this great graph explaining the contagion threat, from Jeff Borack of Kerrisdale Capital ( via Zero Hedge ). Note France’s massive exposure to Greece. Hungary Is Still A Serious Threat. Check Out The Top Contagion Worries Here > Join the conversation about this story »
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It’s Not Just Hungary, Bulgarian And Romanian Debt Could Crush European Banks Too
The focus this week has been on the threat of Hungarian contagion to some of Western Europe’s top banking companies, but Hungary is just the beginning. Romania and Bulgaria too pose a threat to European banking stability, because of their interconnectedness with the broader banking system, according to Jeff Borack of Kerrisdale Capital ( via Zero Hedge ). Countries that need to be concerned about their exposure to Romania and Bulgaria include Greece, Austria , and Italy. The reality is any that this problem is systemic, that if one of the country’s in Europe was to default or face a severe haircut, the carry on effect would be significant to the banking sectors of Austria, Greece, France , or Italy (and potentially others). Check out this great graph explaining the contagion threat, from Jeff Borack of Kerrisdale Capital ( via Zero Hedge ). Note France’s massive exposure to Greece. Hungary Is Still A Serious Threat. Check Out The Top Contagion Worries Here > Join the conversation about this story »
Read the article on The Business Insider
