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Greek Banks Get Nationalized

The banks of Greece are heavily exposed to the sovereign debt of their country. A default would require many of them to seek new capital to make up for the losses, and could trigger a run on banks by Greek depositors.

It's very likely that the Greek government would be forced to declare a "bank holiday" to prevent a run. Eventually, the most exposed Greek banks would likely have to be nationalized.

Photo: Louisa Gouliamaki | AFP | Getty Images