British Investment Bank Barclays Capital reported large U.S. banks have an exposure of $176B to debt ridden European countries.  73 US banks have exposure of $86B to Ireland, $68B to Spain, $18B to Greece and $8B to Portugal, according to Barclays.

The amount, however, is relatively modest.  The $176B is only 5% of total foreign exposure held by US Banks.  The data to compile the reports was from the Federal Financial Institutions Examination Council, a body dedicated to uniform principles and standards for examination and reports of U.S. financial institutions.

The European debt is still affecting banks, even if it is not a direct threat.  Bank spreads, the differences between the interest rate charged on loans and the interest rate given to depositors, have become very volatile as they are affected by broad market risk tolerance.  Broad market risk from the European debt is due to sovereign risk.