Tue, 08 Nov 2011 15:20:51 GMT
Europe Banks are unloading sovereign bonds
Commerzbank AG and BNP Paribas SA are getting
rid of sovereign bonds by anticipating losses on sale. BNP Paribas took losses
of €812 m from cutting holdings of Euro zone sovereign debt. Commerzbank AG has
reduced its Spanish, Portuguese, Greek, Italian, and Irish bonds by 22%. By
unloading sovereign bonds banks may undermine EU officials' efforts to reduce
borrowing costs and worsen region's crisis.