Description: Dexia, BNP Paribas, and SociÃ©tÃ© GÃ©nÃ©rale are resisting pressure from regulators to accept more losses on their holdings of Greek government debt amid criticism they havenâ€™t written down the bonds sufficiently.
Questions for discussion:
- Summarize the accounting problems facing these banks.
- What are the possible solutions?
- How would default by Greece affect these banks financially?
- What should investors do to mitigate their risk?