Wall Street High Rollers Crushed Again By Investments In Plunging Greek Bank Stocks

Many of them saw the $6.7 billion worth of investments in Greek banks that they made in February 2014 evaporate just a year later, under the risk of a Grexit. Although they lost their initial bet on Greek banks, last November they dared to put an additional 4 billion euros ($4.45 billion) worth of funds into the Greek banking system... three months later they lost 61 percent of their initial investment. Greek bank shares have plunged as uncertainty over yet another stalled bailout review weighs on the country's economic recovery prospects.

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Greek bank shares are pricing the probability of a new round of capital injection later this year as a result of an ongoing political and economic uncertainty. If the Greek banks find themselves in need of another recapitalization, this time it will be done with bondholder and depositor money, just like in Cyprus in 2013. Should that be the case, then it is expected that mergers and financial resolutions will follow.