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These are the European banks to seek out and to avoid in the event of a severe credit crisis

The Wall Street Journal points out that the likelihood of a hard Greek default increased this morning following the Greek government's announcement that it's missed its budget target and the Greek deficit will be 8.5% instead of 7.6% of GDP this year.

This being the case, now may be the time to position yourself at a bank which is relatively robust in terms of short term liquidity. Helpfully, therefore, analysts at Espirito Santo have produced a chart showing which banks should be able to withstand another meltdown and which banks shouldn't.

Credit Suisse looks like a good bet. SocGen and BNP Paribas don't.

(SCROLL DOWN TO SEE THE CHART!!)

EspiritoSantoliquidity

Source: Espirito Santo

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AUTHORSarah Butcher Global Editor
  • Ca
    Can see the light in the dark
    4 October 2011

    Jay - Morgan Stanley is a US firm and would therefore not be comparable to the European Banks that are being discussed above. Although I agree that it is not as bad, at present, as people are making out however there are troublesome times ahead for at least the next 18 months. It won't be easy for a lot of people but those who are fortunate enough to be talking about this in 2 years from the security of their office will be in a good position.

  • Ja
    Jay
    4 October 2011

    I think this is scaremongering...its the media that cause the rumours to spread, like the Rumour that Soc Gen was in trouble in August when in fact it was an insurance firm that held Soc Gen shares...then there was a snow ball effect that started...all by the media!!
    If you look at Morgan Stanley's and say Soc Gens 5 year CDS...yesterday MS was at 490 and SG at 339 yesterday afternoon around 3.30pm....so the graph above just does not represent this...unless MS is completely off the chart and would be at the top of this page if it were on there??

  • Su
    Sun journalist
    4 October 2011

    sarah got rejected from the sun.

  • an
    anti-tabloid
    3 October 2011

    sarah why do you insist on scaremongering? maybe you should go and work for the Sun instead

  • Bo
    BooShaka
    3 October 2011

    This information is wildly inaccurate and uses so called basel 3 measures which don't come into effect until 2015. In addition the LCR numbers are not generally published and if they are published they are a best endeavors.

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