The European debt crisis could quickly spread to US banks, which are heavily exposed to Europe, banking analyst Dick Bove told CNBC.com.
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Louisa Gouliamaki | AFP | Getty Images Protestors escape tear gas fired by policemen in Athens. |
Bove, of Rochdale Securities, released research showing the massive exposure US banks such as JPMorgan Chase, Morgan Stanley and Citigroup have to European debt.
Worries about the spreading debt crisis in Europe helped trigger a selloff in US stocks, which quickly escalated after an apparent trader error. The Dow dropped nearly 1,000 points before closing down nearly 350 points.
"The five biggest banks in the United States have a substantial risk to what's going on in Europe," Bove said in a telephone interview. "We've argued for a couple of days that Greece will default because it has no other option....Where are they going to get the funds to repay?" Read more
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