Facebook Vice President David Marcus is the face of the company's Libra digital currency, but the original driving force was a 26-year-old female corporate-development...Technologyread more
Amazon's new policy for account suspensions doesn't go far enough to protect sellers from potentially unfair and wrongful suspensions, merchants say.Technologyread more
There is no end in sight to the Boeing 737 Max grounding after two fatal crashes, prompting airlines to rethink their growth plans.Airlinesread more
After a year of flooding, Midwest farmers face a stifling heat wave that's spreading across the U.S.Weather & Natural Disastersread more
On Saturday, Disney's Marvel Studios announced its upcoming slate of superhero films during a panel at San Diego Comic-Con.Entertainmentread more
Moving lots of data to a public cloud over the internet can take months or years. CNBC got an inside look at how AWS transfers data to the cloud for its clients.Technologyread more
A quarter of the S&P 500 companies report earnings next week, and that could buffet the market as investors await the July Fed meeting.Market Insiderread more
Iran's Revolutionary Guard claims a British tanker it still holds, Stena Impero, failed to follow international maritime rules.World Newsread more
"It troubles me that the most important political office in the world is becoming the face of racism and exclusion," Kaeser said in a Twitter post.Politicsread more
Silver's rally could be losing its shine after the precious metal reached its year-to-date high, futures experts warn.Futures Nowread more
Some 40% of Americans would struggle to come up with even $400 to pay for an emergency expense. Just how are so many Americans so short on cash? Blame debt.Personal Financeread more
Greece's already-fragile banking sector has taken a hammering as fears of a debt default have hit lender's stocks—and deposits.
Following the victory of anti-austerity Syriza in the polls at the weekend, traders are seriously considering the possibility of a default on Greece's sovereign debt. It's not the first time Greece has defaulted—the first one was around 450 BC and, more recently, private bond-holders were forced to take a haircut on their debt back in 2012. But Greece's banks are ill-prepared for another one.
Shares in the country's four main banks have tumbled since Friday, when polls indicated a victory for Syriza.
Meanwhile, Greek banks have hemorrhaged deposits since December, when a Syriza victory was seen as increasingly likely. On Wednesday, Citi Bank economists cited estimates suggesting that around 3 billion euros ($3.4 billion) flew out of Greek banks in December, followed by a further 8 billion euros in January.
Syriza's fiery young leader Alexis Tsipras has consistently argued that Greece's sovereign debt burden of 320 billion euros ($364 billion) is unsustainable, and that the country must be offered some form of debt relief—a policy that Germany, among other lenders to Greece, has dismissed.
"Europe and Germany is prepared for accepting the worst case of a Greece default," Friedrich Heinemann, head of the department for public finance at Munich's ZEW research institute, told CNBC on Wednesday.
"A big name is starting now… They are sending out signals of a very tough stance in the upcoming negotiations. But I think it is important that Europe now also sends out a signal that it cannot be blackmailed, because the Greek government, I think it has the expectation that Europe is very anxious to avoid any stopping of payments from the Greek side."
At present, Greece is due to repay 2 billion euros to its lenders in March, of which 1.5 billion euros is owed to the International Monetary Fund.
One option is that Greece and its bailout supervisors could strike a compromise that would see the country continue with its repayments on more sustainable terms. For example, Greece's existing debt could be replaced with longer-term bonds with lower interest rate payments.
However, Alberto Gallo said this method, which has been previously tried, would simply delay the problem.
"We do expect both a soft restructuring of Greek debt and OSI (official sector involvement)," said the economist in a research note on Wednesday.
"We think an OSI haircut of at least 33 percent (to EFSF and bilateral loans) is required to restore sustainability, reducing the debt-to-GDP ratio by 35 percent points."