U.S. Companies Brace for an Exit From the Euro by Greece
03/09/2012 9 comentarios
Even as Greece desperately tries to avoid defaulting on its debt, American companies are preparing for what was once unthinkable: Greece could soon be forced to leave eurozone. Bank of America Merrill Lynch has looked into filling trucks with cash and sending them over Greek border so clients can continue to pay local employees, suppliers, in the event money is unavailable. Ford has configured its computer systems so they will be able to immediately handle a new Greek currency. No one knows just how broad shock waves from a Greek exit would be, but big American banks and consulting firms have been doing a brisk business advising their corporate clients on how to prepare for a splintering of eurozone. That is a striking contrast to assurances from the European politicians that the crisis is manageable and currency union can be held together. On Thursday, the European Central Bank will consider measures that would ease pressure on Europe’s cash-starved countries. JPMorgan Chase, though, is taking no chances. It has already created new accounts for a handful of American giants that are reserved for a new drachma in Greece or whatever currency might succeed euro in other countries. Stock markets around the world have rallied this summer on hopes European leaders will solve Continent’s debt problems, but the quickening tempo of the preparations by big business for a potential Greek exit this summer suggests investors may be unduly optimistic. Many executives are deeply skeptical that Greece will accede to austere fiscal policies being demanded by Europe in return for the financial assistance. Greece’s abandonment of euro would most likely create turmoil in global markets, which have experienced periodic sell-offs whenever Europe’s debt problems have flared up over last two and a half years. It would also increase pressure on Italy and Spain, larger economic powers that are struggling with debt problems of their own. “It’s safe to say most companies are preparing,” said Paul Dennis, a program manager with Corporate Executive Board, a private advisory firm. In a survey this summer, the firm found 80% of clients polled expected Greece to leave eurozone, and fifth of those expected more countries to follow. “15 months ago when we started looking at this, we said it was unthinkable,” said Heiner Leisten, a partner with Boston Consulting Group in Cologne, Germany, who heads up its global insurance practice. “It’s not impossible or unthinkable now” (…..)