Deutsche (DB) Projects Losses To Banks From Greek Crisis

Deutsche Bank DB has said that the European banks holding Greek sovereign debt may be asked to take a ‘haircut’ on their lending, which would mean a loss from 50 billion to 75 billion euros. Deutsche bank itself has low direct exposure to Greek debt but can face losses from the spillover effects. The exposure to high deficit countries like Spain and Italy and to the Credit Default Swaps related to Greek debt does pose risk for Deutsche. German banks other than Deutsche have higher exposure to Greek debt, with total German banks exposure at $45 billion, next to that of France, which has the highest exposure.