Greek Bank Stocks Are Collapsing After Big Merger Is Called Off

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A big merger of two Greek banks has been called off due to lack of creditor support.

From Ekathimerini:

National Bank of Greece and Eurobank Ergasias will stage their recapitalization separately, Bank of Greece announced late on Sunday, thereby freezing their merger procedure. All signs point to the two banks continuing autonomously.

The process and the timetable of the share capital increases of the two lenders as well as those of Alpha Bank and Piraeus will proceed as planned, BoG said.

...

The creditors have been eager to avoid the creation of such big a group that would not be easy to find a strategic investor in the future.

Major Greek bank stocks are plummeting.

#Greece Piraeus -22.5%, Alpha Bank -20%, NBG and Eurobank -30%

— Efthimia Efthimiou (@EfiEfthimiou) April 8, 2013