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Description: Dexia, BNP Paribas, and Société Générale are resisting pressure from regulators to accept more losses on their holdings of Greek government debt amid criticism they haven’t written down the bonds sufficiently.

Source: Businessweek.com

Date: 10/06/2011

Link:   http://www.businessweek.com/europe/a-divide-over-valuing-greek-debt-10062011.html

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?

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