Well, here's the first bank to take a hit:
http://www.bloomberg.com/news/2012-...-injection-after-isda-triggers-greek-cds.html
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If the net exposure is $2.4 billion, net-net on a cash basis:
From the article:
The net cash payout on CDS when a credit event occurs is the face amount of the CDS contract less the recovery value of the underlying obligations as determined at a CDS auction. For example, if the CDS auction showed the recovery value of debt to be (hypothetically) 25%, the aggregate amount payable would, in Greece’s case, be 75% of $3.2bn: $2.4bn
And the bloomberg article is saying one institution is up for $1 billion, then we only have another $1.4billion to go from someone (by the way i have no idea about this $1billion), i am looking at the big picture.
In the whole scheme of things its chicken feed.
What was the US fed bailout at? somewhere north of the trillion mark wasnt it.