This is eerily reminiscent of what Bear Stearns and Lehman Bros. did before they blew up:
Exactly what rumors are they categorically denying? ‘Not sure, but the cost of insuring against a SocGen default is up by 10% today. I’m guessing the market’s speculating they own some toxic Italian or Spanish debt.
Still, what happened to Bear Stearns’ CDSs makes the chart above look positively tame:
Here’s a comparison of the action.
Tags: Europe Crisis