Chillin' out till it needs to be funded
Dealbook tells us that the first greek confession has happened.
Credit Agricole, the French bank, pushed back profit targets for struggling Greek unit Emporiki on Tuesday and will take a 400 million euros ($536.7 million) write-down as Greece fights its debt load, Reuters reported.
Credit Agricole said Emporiki would return to profit in 2012 — a year later than previously forecast — and more than doubled its 2010 net loss forecast for the unit to 750 million euros in an update to investors on Tuesday. It had previously forecast a loss of 300-350 million euros for the bank it bought in 2006 after taking an initial stake in 2000.
That is probably nothing compared to the books at BNP and Socgen. However, German Landesbanks would not be so clear in their Greek strategy. The stimulus was a German brainchild.
Also Anshu Jain, took over as Global Markets head at Deutsche Bank yesterday after Mike Cohrs left the greek dabbing paper in his lap. Deutsche Bank might still see a couple of accounting policy changes but the debt will have to go thru the verifications before the sovereign is rolled over. Some big tranches may be extinguished for another German citizen Bank to hold.