Greek Banks Tumble as Italy Adds to Capital Worry
- Eurobank Ergasias drops up to 14.4 percent in Athens trading
- Bad-loan plan could fall afoul of European rules, Fitch says
A customer uses an ATM operated by Eurobank Ergasias SA in Athens.
Photographer: Kostas Tsironis/Bloomberg
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Greek banks slid as contagion from Italy exacerbated concerns they’ll need to raise more capital to deal with their mountains of bad loans.
The FTSE/Athex Bank Index was down 4.9 percent at 3:18 p.m. in Athens, having earlier fallen as much as 7.9 percent. Eurobank Ergasias SA tumbled as much as 14.4 percent before paring its losses to 8.6 percent, while Piraeus Bank dropped 9.8 percent, having earlier fallen 13.6 percent.