Soc Gen and Credit Agricole are the lead losers in a big sell off in Eurozone banks this morning, BusinessInsider says.
French banks are getting hit worst for 2 reasons:
1. There are reports about French banks going cap in hand to the Middle East looking for fresh cash. (BNP's CEO has denied that he's on a cash hunt in the Mideast, and he says his bank is fully capitalized.)
2. El-Erian said this morning that "These are all signs of an institutional run on French banks."
As a result -
SocGen was down nearly 7% this morning as people grow concerned about the IMF's desperate call for banks to be recapitalized. Now it's down about 6.5%. Credit Agricole is down over 7%.
Other Euro banks are down too, for obvious reasons.
One new one: IMF issued a statement yesterday that said that Euro banks have $410 billion in exposure to the crisis in the Eurozone. The IMF also said that banks need to recapitalize to ensure that they can weather potential losses....
Read more: http://www.businessinsider.com/soc-gen--credit-agricole-is-leading-a-big-sell-off-in-euro-banks-2011-9#ixzz1YhU5Aj86
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