We wrote about this here and for those of you interested in the subject the Economist article here is highly recommended reading.
As intimated in both articles this is a crucially important event and market reaction is highly unpredictable. Handled badly it will cause a second banking crisis, handled well it could just be the turning point for the rehabilitation of European banks with a little more confidence being shown internationally.
The current obfuscation only leads to suspicion that the banks individually have not faced up to reality and are akin to the so called Zombie bank in Japan.
Author: Chris Slay
