Satyajit Das, derivatives expert and the author of Extreme Money: The Masters of the Universe and the Cult of Risk, feels that there may not be enough money for rescues.

Date: December 08, 2011
Author: Satyajit Das
Categories: Capital & Strategic Issues, Government Finance, Risk and Regulation, Capital Markets
Keywords: Euro Crisis, European Central Bank, Cost of Capital, Budget Deficit

Banks globally, especially European banks, are seen as increasingly vulnerable to European debt problems. The total exposure of the global banking system to Greece, Ireland, Portugal, Spain and Italy is over $2 trillion. French and Germany banks have very large exposures. If there are defaults, then...