Greek default vs. Greek owned banks abroad?

Discussion in 'Economics' started by moderntimes, Nov 7, 2011.

  1. What is the most probable scenario in case of Greek official default on Greek owned banks in foreign countries (especially the ones neighbouring Greece), although these banks function as separate subjects, have high capitalization percentage and are not directly exposed to Greek debt?

    What would be the significance of the nationalization of their "Greek mother" banks in terms of their prospects?

    Any opinions on the matter are welcomed.:)
  2. Depends on the specific nature of the legal relationship between the parent and the subsidiary.
  3. Martin, did you know Deutsche just made their Belgian branch an integral part of their German mother company.

    They now advertise with 100% savings guarantee by the German state and I take it some of those billions will get slushed elsewhere to cover some holes right....