Shutterstock photo
Markets

Time to worry about Greece, again?

Shutterstock photo

Shutterstock photo

Greece threatened March 6 to default on any bondholders who do not take part in this week's 206 billion euro debt swap. European bank stocks did not react well.

[caption align="alignright" caption="In ancient times, Greek homebuilders called big houses "McParthenons.""]

[/caption]

According to the Financial Times , the Greek public debt management agency has said that Athens "does not contemplate the availability of funds to make payments to private sector creditors that decline to participate in PSI." The threat is aimed at the 14% of investors who own Greek bonds issued under international law.

When trading ended on March 6, the iShares MSCI Europe Financials Index ( EUFN , quote ), was down 5.36% and $0.97 to $17.06. Deutsche Bank ( DB , quote ) was off by 6.52% to $43.58. Royal Bank of Scotland ( RBS , quote ) was at $8.15, lower by 6.21%. ( UBS , quote ) was down 5.28% to $13.10.

The drops are all the more regrettable because securities for European lenders had finally started to recover . Year to date, iShares MSCI Europe Financials Index was up 12.61%.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

Stocks