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It is interesting and I think it is directionally correct but I
suspect the German banks are in a very similar place since they were
competing for the same markets as the French and they have customers
in each of the markets mentioned.
On Dec 22, 2010, at 10:16 AM, Neil Callahan wrote:

> I heard a great quote at a Christmas party – We know the crisis is
> over when the French banks fail . . . they own a tremendous amount
> of the bad debt of Greece, Ireland, Portugal and Spain. The Street
> is waiting for them to write it all down.
>
> I wonder what the chatter is about BNP Paribas, Credit Agricole and
> SocGen?
>
> ------------------------------------------------------------------------------------------
> Neil Callahan
> Rosemont Seneca
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>
> From: Michael Andrews [mailto:mandrews@ips.edu]
> Sent: Tuesday, December 21, 2010 11:37 AM
> To: Devon Archer; Curtis Hastings; Hunter Biden; Eric Schwerin; Neil
> Callahan
> Subject: China frets about spreading EU debt - SCMP
>
> <image001.gif><image002.gif>
> <image003.jpg>
> China frets about spreading EU debt
>
> Reuters in Beijing
> 1:21pm, Dec 21, 2010
> <image005.jpg> <image007.jpg> <image009.jpg> <image010.gif>
>
> China urged European authorities to back their tough talk with
> action on Tuesday by showing they can contain the euro zone’s
> simmering debt problems and pull the bloc out of its crisis soon.
> China, which has invested an undisclosed portion of its US$2.65
> trillion reserves in the euro, said it backed steps taken by
> European authorities so far to tackle the region’s debt problems,
> but made clear it would like to see the measures having more effect.
>
> “We are very concerned about whether the European debt crisis can be
> controlled,” Chinese Commerce Minister Chen Deming said at a trade
> dialogue between China and the European Union.
>
> “We want to see if the EU is able to control sovereign debt risks
> and whether consensus can be translated into real action to enable
> Europe to emerge from the financial crisis soon and in a good
> shape,” he said.
>
> Concerns that Europe’s debt problems will spread beyond euro zone’s
> periphery to engulf bigger economies such as Spain and Italy have
> weighed on global financial markets this year and taken a toll on
> the euro.
>
> In part to protect its investments, China has repeatedly expressed
> its support for the single currency.
>
> In October, Premier Wen Jiabao promised to buy Greek government
> bonds once Greece returned to debt markets, in a show of support for
> the country whose debt burden pushed the euro zone into a crisis and
> required an international bailout.
>
> China’s Vice Premier Wang Qishan said on Tuesday Beijing has done
> its part to help ease Europe’s problems and held out hope that the
> crisis could soon be resolved.
>
> “China supports the slew of measures by EU and IMF to stabilise
> financial markets, and China has taken concrete actions to help some
> European countries deal with their sovereign debt crisis,” Wang said
> at the opening of the trade dialogue.
>
> “The EU has taken active measures to deal with the debt crisis, and
> we hope the measures can achieve some results as soon as possible,”
> he said.
>
> But he noted risks abound, given weak global demand and volatile
> financial markets that are awash in excessive liquidity.
>
> On its part, Wang said China would pursue a prudent monetary policy
> and active fiscal policy to ensure the world’s second-largest
> economy can continue to grow at a solid and a sustainable pace.
>
> The annual trade talks between China and the European Union is a
> chance for the two major economies to seek compromise on a number of
> issues that have raised tensions in recent months.
>
> China, for one, is concerned by what it sees as growing European
> protectionism and trade tariffs.
>
> Minister Chen said Beijing hoped the European Union could recognise
> China as a market economy as soon as possible.
>
> China is keen for that recognition as that would make it less
> vulnerable to anti-dumping charges under rules of the World Trade
> Organisation.
>
> Separately, Wang said China also hoped Europe would lift its
> restrictions on hi-tech exports to China.
>
> Europe, in exchange, urged China to keep its markets open for
> European firms.
>
> “China brought European consumers a large array of affordable
> products. This has benefited both of us. But now it is essential for
> both our economies that China has an open and welcoming business
> climate,” said European Commission Vice-President Joaquin Almunia.
>
>