The document analyzes the potential capital needs of German and French banks if Greece defaults on its sovereign debt by 50-75%. It estimates that a 50-75% Greek default would require €36-40 billion in new capital, with €9.7-14.4 billion for Germany and €26.1-25.6 billion for France. Factoring in a 100% default on Greek banks and a 15% default in the Greek private sector, it estimates total capital needs for German and French banks could be over €50 billion, making the rumored €100 billion recapitalization of European banks a reasonable estimate to cover Greek losses alone.