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Today rich thank you partly Europe's debt troubles also we've been covering for weeks months in fact far from over and as the focus shifts from Greece now -- Portugal.
It's becoming more clear that government bailouts alone won't suffice Elizabeth MacDonald joins us.
Max hi great to see I -- so Moody's downgrades Portugal John camp to junk status and they're saying a government bailouts not gonna do it the private sector has to get involved tightening entice the yen.
Sector that's right -- didn't you're basically what we're seeing is Portugal already got a 113 billion dollar bailout Moody's is saying that.
Portugal will be unable to borrow in the credit market -- markets and 2013 as originally planned so now Moody's is indicating -- to -- to get a second bailout.
You're gonna have to go to your private investors go to the bond holders and get a haircut and so what we're talking about here -- who was going to get.
I hit the worst here and we're seeing of course Spain is going to get hurt very badly Spain's banks has -- highest exposure.
And we -- seed bank and officials in Portugal saying look Moody's move was quote more insulting.
And incomprehensible to them because basically now Portugal just like Greece can't go to the European Central Bank.
And bar at the European Central Bank using its own bonds and Portugal like Greece relies very heavily for its short term funding on the ECB.
So the big question of late has been what kind of exposure these banks have to that we called on the pig nations.
Yeah -- and that's a big question let's sue full screen.
Of which banks are exposed.
To Portugal and the other -- nation's you're gonna see on -- list here you're gonna see Barclays Royal Bank of Scotland.
Lloyds has some exposure to look at the American banks legacy Bank of America Citigroup JPMorgan.
Wells Fargo Bank in new York Mellon State Street.
Goldman Sachs Morgan Stanley and also -- to bank at HSBC of course as the European banks.
And -- -- already action and Portuguese.
210 year yields spiking deeper into double digit territory so.
When you think about what you know -- -- exposure to Portugal alone it's about 41 billion dollars Citigroup out with a note saying the overall total haircut.
If -- everybody has to take a haircut on a pig nation get this more than 600 billion dollars -- That that's going to hurt you going to go to work to talking about heels I mean it's always worth a comparison to bring back the US benchmark our ten -- just over 3% today some you're talking -- -- -- yesterday you're describing the technical default of Greece.
The shortest term maturities are shorter term matier -- it will -- -- 20% that's basically where are we look at.
Well Portugal's -- -- about drifting higher toward 13%.
So that's ten -- tenth eleventh that -- percentage points higher.
Then then the US so again -- is next and across here's who you know more movies has been doing this for you to since December.
Talk on the street Ireland is next Ireland is -- the cross -- next for the credit rating -- while we know what shall be covering instead.
The accept it McAleese -- -- Latin.
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