From Zero Hedge:
A little over a month ago, Zero Hedge started an avalanche in the financial sector, and an unprecedented defense thereof by the "independent" financial media and conflicted sell side, by being simply the messenger in pointing out that the gross exposure of one Morgan Stanley to the French banking sector is $39 billion.
The firestorm of protests, which naturally focused on the messenger, and not the message, attempted to refute the claims that Morgan Stanley (and many others) are overexposed to Europe (both banks and countries) by stating that gross is not net, and that when one nets out "hedges" the real exposure is far, far lower...
... Today it is time to refresh this story, as none other than Bloomberg pulls the scab right off and while confirming our observations, also goes further: Yes, banks are not only massively exposed to Europe, but they are in essence misrepresenting this exposure to the public by a factor of well over 10!
Bloomberg begins with some simple math...
Read full article...
More on the euro crisis:
Why it could be a great time to short the euro again
Top SocGen analyst: The eurozone crisis will get worse... much worse
Euro CRISIS: The situation in Greece is bad... This could be much worse