DEXIA had all those swaps, they are the AIG of Europe. If you think they are going to let SG fail, you are mistaken. They are pumping money in to all of them like crazy, China is even doing it with their banks. Seriously, if the Fed printed another trillion tomorrow, how would you ever know? Governments will bury the truth and bail them all out.
Hey Vinnie, if Soc Gen goes kaput, that is the end of any pretense that France is any different than Greece.
I don't have any way to gauge the European situation, but I do think at the very least, US equities will go into a long sideways, low volatility chop at lower levels than this (with circa 1100 being the first obvious level for such a development). Meanwhile, I say trade the volatility, but be careful to not be among those left chairless when the volatile music fades out.
Also, Jeffrey Gundlach found innocent last Friday in case versus TCW. TCW was taken over by SocGen in early 2000's. Jury awarded Gundlach $65M in back pay/compensation. Gundlach left TCW to start own company called Doubleline in late 2009.