Does NY RE have exposure to ECB stress

The real extent of the Greece crisis -- the necessary default-- has been widely reported. But the ECB exposure to default has been diminished except in some Euro papers. Graffitti posted a story last week on this board from Der Spiegel about the exposure of ECB to a default. It is now starting to receive attention in US media. (Graffiti article is mentioned in article posted below) Yet even last... [more]

The real extent of the Greece crisis -- the necessary default-- has been widely reported. But the ECB exposure to default has been diminished except in some Euro papers. Graffitti posted a story last week on this board from Der Spiegel about the exposure of ECB to a default. It is now starting to receive attention in US media. (Graffiti article is mentioned in article posted below) Yet even last week the stock market rose when it was announced that an agreement was in the works. Yet many prominent analysts said that was BS. Today when it was reported that the ratings orgs said a voluntary extension of debt ( the "workout") would still be declared a default, I expected a downturn in market but it didn't happen. Now, the serious exposure of ECB and Euro Banks is starting to hit the general US media. I assumed that vis a vis the post I made last week, the US banks would be affected by another Lehman type credit shock if there was a default. However, no one is reporting on US bank exposure to Euro bank debt if there is a default. If US banks face more stress, RE will take another hit. And how could NY RE not participate in that kind of hit -- wouldn't it rock the financial markets in NY? Or will this all blow over for another few years. The Euro version of Hank Paulson on his knees to Nancy Pelosi. I am limited in real understanding here, but it looks like Greece---and the ECB -- is in some deep shit trouble. http://www.cnbc.com/id/43304981 [less]