NEW YORK--([ BUSINESS WIRE ])--Wall Street Webcasting presentsexclusive video of Rich Gordon, the highly regarded Fixed Income Market Strategist of Wells Fargo Securities (NYSE: WFC). Gordon analyzes the continued increase in risk aversion by the EU and US.
"will have significant repercussions because the bank is perceived as having strong risk controls."
The EU is as reluctant to drop Greece as Greece is to step away, because both parties are unsure of the consequences. Many are under the assumption that if Greece were to leave the EU, capital would leave the country, but Gordon points out that capital has already left Greece. The Greek stock market is down by 90% since 2007. Gordon explains why Greece stands a better chance of recovery if they leave the EU.
Another cause for the increase in risk aversion is the costly mishap, at JPMorgan Chase, last week. Gordon predicts JPMas two billion dollar loss awill have significant repercussions because the bank is perceived as having strong risk controls.a As a result, more rules, restrictions, and reporting, may be imposed.
Please visit the following link to view the video: