Greece "Velvet Restructuring" Imminent, Blames Upcoming Second Bankruptcy On Citigroup Trader

Tyler Durden's picture

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...high and tight, please.

French Frog's picture

If (big if?) this was to come out during the weekend when markets are closed, can someone enlighten us as to the effect it would have on the $ and Precious Metals please?


centerline's picture

A really interesting pre-market and market open.  LOL.

Ahmeexnal's picture

Thought criminals...all the bunch of ZHers.

golfrattt's picture

Euro would certainly take a hit, causing a small pop in the USD index and a pullback in commod's...

most likely. It'll be interesting to see if the story alone moves the markets negative on Monday...

topcallingtroll's picture

I know a fellow soldier!

Somebody is getting a crew cut!

Is that what we now call a 70 percent haircut?

Tail Dogging The Wag's picture

"Investors need to diversify, they need to own some real estate, they need to own some farmland, they need to own some equities, some cash, and some precious metals..."   Marc Faber —Investment analyst

Got real estate and farmland outside your home country yet?

Bleeping Fed's picture

Adding "velvet" means the restructuring won't be smooth as silk, but close.

luigi's picture

They seemingly cannot afford vaseline anymore...

Bahamas's picture

olive oil is even better lubricant

centerline's picture

I dont want to know how you know that please.

topcallingtroll's picture

Everybody knows that, silly!

Where were you when we were getting high?

luigi's picture

Too good to be used that way...

Olive trees could be the only valuable assets left to Greece for exiting this mess.

May I point on the odd coincidence of the again exploding Greece/European/Euro/Debt crisis on the werge of the U.S. 99 billions bonds auction of next week (

Like the French say (but they rarely learn from their own wise says) "a la guerre comme a la guerre"...


earnulf's picture

I just wonder what the rate on 100 year bonds for greece would be.

Catullus's picture

Keeping with the lebowski-Greek tragedy theme:

Daddy has no real money of his own.

Duuude's picture




Hephasteus's picture

Operation Velveeta?

Dick Darlington's picture

Paging the high priest of the europonzi in the cradle of cleptocracy: Please turn out the lights.

topcallingtroll's picture

I hate it when people make me snort coke, at least the liquid stuff. Gotta remember drinking and hedging can be dangerous.

Commander Cody's picture

The email is speculative.  The Greeks pointing to it as criminal are assholes.  Papawhatever is high on something.

Haircuts - bitches.  Riots, too.

topcallingtroll's picture

Free riot with each haircut!

Hurry, offer ends soon.

Oh heck. What am I saying. This is a permanent offer. Take your time.

Josh Randall's picture

Just another big Gyro up the wazoo - hope the Greek people don't stand for this  

Ray1968's picture

A Citi trader. Yup, that's the cause of ALL thier problems. Greece was an innocent victim of a rouge trader. Good job guys!

rufusbird's picture

It is better if it is a foreigner... (like the Russian Sergey Aleynikov)

El Hosel's picture

.... Meanwhile back at the ranch, the US President has ordered an "investigation" into the sudden rise in gasoline prices. So far there is  no mention of any investigation into artificially low interest rates, trillions in unfunded liablities, rampant corruption in all areas of the financial system, failure to prosecute blatant fraud or treasonus behavior among politicians and other corporate and financial elite.

Dick Darlington's picture

I'm sure they will find one email which is behind all that evil u mentioned. ;-)

Flounder's picture

Sounds like Obummer's speculator investigation ought to be tied into the interpol Citi email investigation to form a global task force called Operation Market Control.

downwiththebanks's picture

Or 'Operation Sucker,' for anyone that thinks a puppet of the banker-gangsters (more $ than anyone ... ever) is going to go after the banker-gangsters in any serious way.

And there's a 0% chance the AG from United Fruit does anything meaningful to punish speculation.  His FBI may kill a few Colombian unionists, but that's another matter.

Cassandra Syndrome's picture


I wonder who is exposed to Greek CDSs?

Dick Darlington's picture

Yep, that's somewhat an elephant standing in the china shop. But i'm sure the outcome will be that there's no credit event. After all, it's mostly bankers sitting in the "committee" deciding if the credit event occurred or not.

mick_richfield's picture

Hey!  "China shop"!   Good idea!  Maybe they can buy this country, too!

What's the Mandarin for "We promise to respect your unique 'culture'." ?


Dick Darlington's picture

Greece already tried to play the "China card" and look how well it worked. Portugal played the same card and look how well it worked. Now Spain has been playing the same card a couple of times and look how well it will work... The europonzi is on the verge of collapse and maybe Greece defaulting on their debt will be the final push off the cliff.

hedgeless_horseman's picture

So, by the same logic, if Hellenic bonds recover, then Greece would have sent a Publishers Clearinghouse team to Leo's home in Canada to present him with Nobel Peace Prize?

I guess we will never know.

jtaskinen's picture

Heh, just ask our new gment. There is little understanding for any further bail-outs. We simply cannot affort this largesse, we are broke as well. AAA rating is a joke.

Portuguese as furious, their ex-president called us gnomes...pretty arrogant posture given the situation.

I hope euro and EU for that matter collapses and this French power concentration excercise in Europe stops.

Hope Finland says no, this wakes people in Germany and they say "no". Why save banksters so that they can get another record bonus

Stormdancer's picture

Thanks for the first-hand reports :)  Is it something about living near lots of ice?  Finns and Icelanders seem to have a better handle on how to deal with globalist bankster psychopaths than anyone else so far.

Chuck Bone's picture

Does the fact that Interpol is getting involved in this not scare anyone else? Man, do you people in Europe have any sovereignty left?

jtaskinen's picture

No, we (in Finland) do not have very much sovereignty left, on a scale from 0-100, maybe 3.4. Socialist state is everywhere, especially in your vallet, monitoring every move we take. And all to our own good, it is good to protect people from their own ignorance and lack of self protection skills. Maybe 30 years of "education" has finally worked.

But good news is, that the US government thinks our tax model is fantastic. Very effective.

Now watch it coming next to you. Take your money and run for cover.

gwar5's picture

Obama signed an executive order on Dec 17, 2009 (in the middle of the night) allowing Interpol to work inside the USA without any constitutional constraints -- no warrants for search or seizure or arrest, and, without any FOIA compliance oversight. They could legally dissappear you in broad daylight and deny it. And, they are housed and work out of Eric Holder's DOJ, which is under direct White House control. The DOJ also does all the interrogations now, not the CIA. Very Soviet-like.

They are now the de facto the national secret police, gestapo, red guard or whatever you want to call them if Obama wants. He is now free to "punish his enemies" if he wants to. 

In January 2010, Obama signed another executive order (again in the middle of the night) giving himself authority over a "council of governors" (COG) in the event he declares "a national emergency." The council would include 2 governors appointed by the President, the US Military, DOD, CIA, NSA, and FBI. The council would have authority to deploy domestic or foreign troops on American soil to suppress domestic unrest. Presumably, this would be required if American soldiers refused to violate the US Constitution to deploy or fire upon fellow YUS citizens. The COG is rather detailed, and extensive, as if the COG is a governmental infrastructure to be maintained for an extensive period of time autonomously.



GodsofGreektown's picture

Coming to a state, province, or municipality close by....As the Spinners and D. Warwick used to sing, "Then came you!" The restructuring industry is where it's at.

Jo's picture

'Interpol' is about as scary as 'CBI' from The Mentalist'.

So no.

Broomer's picture

... result in the same shadow banking system "Ice-Nine" effect that nearly destroyed capitalism back in September 2008.

You say this like capitalism is still alive...

lizzy36's picture

Velvet restructuring, liability management exercise......

Seems like a great week for a Greek tragedy. After all the only thing the sheeple are interested in is the fairy tale: the princess, her prince, his bald spot and the over/under until their divorce.  

A Man without Qualities's picture

the situation for some pension funds is even worse than that.  They bought a lot of structured bonds with the sovereign as the reference credit, and so any default will create a loss equal to the loss on the bond plus the loss on the swap.  We could be talking big numbers here, say another 15 - 20% of notional, or maybe worse.  Of course, they should question who bought these, why and from whom and how much did they overpay.  Greek is a total fucking kleptocracy - nobody puts anything into the system and everyone tries to take something out.  When the break does come, it's going to stun people when they see just how broke the country is and just how bad the theft has been.

It's essentially the same shit with Portugal - they are very good at the public face of respectability, but behind the scenes, hidden in the second set of books, the picture is really ugly.

topcallingtroll's picture

There are a lot of people who dont understand the southern european culture. I had hoped it wasnt quite as bad as it looked, but i am now afraid it is as bad as many feared. It will take massive european subsidy to keep the haircut around 50 percent.