LONDON (MarketWatch) -- Shares of National Bank of Greece SA
GR:ETE
-10.38%
sank 30% and Eurobank Ergasias SA
GR:EUROB
+20.00%
slumped 17% in early action on Monday, after a planned merger
between the two banks was halted by the government over the weekend.
The banks are now heading for state control as Greece's bank-rescue fund
will soon begin recapitalizing the two lenders separately, a senior
Greek Finance Ministry official said on Sunday. The decision to block
the merger came amid fears that the new entity would become too big to
be bailed out by the government in case of financial struggles. The
Athex Composite index
GR:GD
+0.74%
lost 2.1% to 805.61, in an otherwise upbeat European market.
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