French bank Credit Agricole (CAGR.PA) is considering walking away from its Greek Emporiki Bank unit and letting it fail if Greece leaves the euro zone, the Wall Street Journal reported on Wednesday, citing a person with direct knowledge of the bank’s plans.
Credit Agricole, which has poured some 6 billion euros into Emporiki since buying the bank in 2006, could face some 5 billion euros of write downs if the bank failed, which could force it to undertake a capital increase.
Earlier on Wednesday the bank said it planned to name Xavier Musca, until recently the top financial adviser to former French President Nicolas Sarkozy, as executive vice president in charge of international retail banking including Emporiki.
(source: WSJ, Reuters, Dow Jones)
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