In the after hours, an historic vote in the parliament of Greece cleared the way for the debt ridden nation to receive another bailout.
By surviving a vote of confidence, Greek Prime Minister George Papandreou has demonstrated to the EU that his majority party can get new austerity measures passed, despite growing public opposition.
That’s important because those austerity measures are a pivotal condition, that Greece must meet to receive the next batch of funds.
Although the outcome was considered extremely likely, now that Greece has cleared this hurdle the chances of a ‘Lehman-like’ financial meltdown are far less likely.
On Tuesday’s Fast Money Melissa and the gang provided in depth coverage of events as they were unfolding and how to position.
Following you’ll find the impact on…. banks. Or click below for the impact on another area:
We’ve broken it down as follows:
- Impact on Markets- Impact on Currency- Impact on Banks- Impact on Commodities- Impact on Europe’s future- Derivative Trades
Impact on Banks
”The concern is that there’s no certainty about how interconnected the banks are,” explains Karen Finerman. “And I don’t know if there’s any way to know that with any certainty.”
Tim Seymour thinks the exposure of US banks to Greece is overstated. “BofA, and JPMorgan are believed to be the biggest holders,” he adds. “From what I understand it’s between $15-$20 billion which isn’t that big a deal.”
Trader Brian Kelly says he still wouldn't touch European banks but agrees with Seymour that American banks won't be badly harmed. "I bought JPMorgan," he says.
Joe Terranova suggset own bank debt rather than the bank stocks and says you can play it long the LQD, which is an ETF made up of 600 corporate grade bonds. "A lot of the paper that's held in the ETF is from financial instituions; JPMorgan, Goldman Sachs, Morgan Stanley. That's a more favorable trade."
On a related note, Guy Adami says if you’re looking to trade Morgan Stanley, “22 could be a double bottom. Stop out a couple percentage points on the downside for potentially 5% upside.”