Daily Archives: May 29, 2012

Claire Jones

Mario Draghi says the European Central Bank’s “strong preference” is for Greece to stay in the eurozone. No doubt that’s because of all the Greek bonds on its balance sheet, right?

The value of those bonds is probably the least of the ECB’s worries if Greece exits. The biggie would be handling the contagion.

The ECB does, however, have substantial holdings of Greek government bonds, along with other Greek assets, which in all likelihood would become worthless if Greece does leave.

How big are the holdings? Read more