US Banks can handle Greece,Ireland & Portugal. But..?

 The exposure of U.S. banks to Greece, Ireland and Portugal is manageable and quite small, Federal Reserve Chairman Ben Bernanke told U.S. Senator Bob Corker in a letter written in July that was released Tuesday. The nearly $200 billion exposure the Bank for International Settlements has reported capture only one side of banks' credit-default swap exposure, Bernanke said. Confidential supervisory information and CDS data from the Depository Trust & Clearing Corp.'s trade information warehouse indicate that the exposures are "quite small." Bernanke does note a sovereign credit event could affect a broad range of markets and financial institutions.








Note :
What is possibly stuck is the ' Sub Prime Mortgages' and the Contagion of the smaller three on the make up of Euro and dereference in growth. The FOMC decesion to keep interest rate low till, at least mid 2013 and its declaration in minutes, possibly reflect the risks involved. In a case, where Germany is politically affected by ' cuddling' of the European debt, shall create fissure within Euro zone and taking cue from this shall be approaching French Elections. However, the apprehensions about the Italy and more so Spain, may also have cascading effect.
As, the Euro plunged towards $1.40 today, speaks volume. 
The question of Euro zone dissipation appears to be the ' Sword ' dangling the all markets and will have ' Largest' ramifications post ' turbulences'  like Mid-70's.