"You’ve gotta understand what happened," Cashin continued. "They sat down with the bank negotiators. They said, 'You’re gonna take a 50 percent haircut. They fought back, 'no no no.'"
Threatened with a loss of 100 percent if they didn't take the 50 percent, the bank negotiators accepted.
"There’s got to be some holders in Greek bonds who are not in that consortium," said Cashin. "If they start to hear they're only going to get 50 percent, you could see a court case come out of this."
What's next? "You've gotta watch the news ticker," said Cashin. "Something could come up at any time...We've kind of isolated the Greek thing and we're headed for Italy."
— Reuters contributed to this report.
CNBC Data Pages:
Disclosure information was not available for NAME or his company.