Whatever the case, France needs to be firewalled. Futures are flying all over place this morning, just as volatile as the regular session. There was a Reuters report (see here) this morning from an unnamed 'banking source' (could be a hedge fund shorting the French banks for all we know!) that an Asian bank had reduced credit lines to major French lenders. Then about 15 minutes ago reports come out that France and Germany will meet either tomorrow (WSJ) or early next week.... and futures reversed sharply. I do think ultimately the ECB will need to be open to bond buying of France, but without the explicit approval to 'print', the ECB will need money from somewhere to do the buying. All that is left of any size is Germany of course.
Anyhow, interesting times. This European analyst on CNBC this morning did a very good job describing the backdrop and potential outcomes as he sees it.
5 minute video