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The German NordLB bank has written down some of its exposure to Greek debt, acknowledging that a 50% haircut on the Greek bonds it holds. While this bank’s Greek assets are relatively small, this is the first bank that is getting ready for the inevitable default of Greece.

Other, bigger banks, are more exposed as  Joseph Cotterill explains:

Fitch said that NordLB exposure was €280m recently “” even with (say) a 50 per cent cut to face value. Compare that with the quantum of risk facing Deutsche Bank, Commerzbank or (within NordLB’s peer group) Landesbank Baden-Wurttemburg, all of whom have billion-euro exposures.

Euro to Dollar remains strong, on high hopes that Greece will be given another bailout program – no real solution to the crisis.