The Dealbreaker: Barclays Sees A 50-60% Haircut As A CDS Trigger

Tyler Durden's picture

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Popo's picture

On what planet is a 49% loss not a credit event?  


..(oh... apparently this one)

FunkyMonkeyBoy's picture

A fascist planet. Wake up, it's here, all as planned.

Popo's picture

Tyler,  can we please stop repeating the clever MSM propaganda word, "haircuts".  

This is in no way a "haircut".  

49% is complete and utter "dismemberment", with massive blood loss and a minimal chance of survival.  

"Haircut" my ass.   

Can anyone imagine using the word "Haircut" if the DOW tanked 49%?

"'Tis nothing but a flesh wound!"

Doode's picture

"If do not bail us out we will explode and take you with us!" Barcap sounds like terrorists - do we negotiate with those even if they are financial ones? Or are they just retards so we have to babysit them even though they wear suits and ties to work? Which one is it because I am furious if the bailouts continue long after all of those folks had an opportunity to get out/unwind their positions/learn things can blow up!!!!


This shit makes me really angry - it was ok/understandable in 2008 when things were not clear and sort of came out of nowhere, but this shit has been telegraphed for years - ever heard of Russian default. And this was stinkier and nastier. Arghghhghghghhghgh!!!



gojam's picture

Yes, I agree Popo.

It's more like a 'Brazilian' and I'm talking about the pubic trim not some historical South American default.

SheepDog-One's picture

Step right up! Free haircuts at the guillotine!

SheepDog-One's picture

But FMB still at the end of the day they cant squeeze blood from a bunch of turnips!

SheepDog-One's picture

So bankers rule over Fullretard Planet, then what? Theyll have no producers, no one knows how to do anything anymore...see what Im getting at? What does it get them?

CrimsonAvenger's picture

Oh, it'll all work itself out. We've gotten this far, haven't we?

SheepDog-One's picture

Well the Bolshevik Revolution also worked itself out a real horrible fashion for millions upon millions of people....but yea it worked out.

tmosley's picture

You misspelled "Eudopia".

gojam's picture

Have you been good this year ?

Dr. No's picture

IF there is one thing I have learned since 2008: Nothing is priced in.

qussl3's picture


People only panic when its too late, rare are those that leave the party early and be willing to be mocked by their peers.

Shvanztanz's picture

I'm usually mocked by my peers while I'm still at the party.

lunaticfringe's picture

It just never ends. Never have I seen such outlandish and ridiculous attempts to keep central bankers in power. It is a wonder to behold, like water running uphill. It will be a pyrrhic victory in the end.

ArkansasAngie's picture



Que me when I should start holding my breath.

I must be dense.  I cannot understand why bankruptcy is so fought against.

Insolvency is a state of being ... not of the mind.

SheepDog-One's picture

Yea yea everyones terrified, Im terrified, youre terrified....but the STAWKS refuse to be terrified in our 25 days non stop giggling continuous melt-up...and after all, stawks are all that matters here in Fullretard Ville.

Fips_OnTheSpot's picture

@ftbrusselsblog: A sign Wednesday's summit could fall short?
           ". << here we go. FT says pre summit Finmin meeting off

Corn1945's picture

So I assume Barclays owns a lot of Greek CDS and wants to get paid on them?

Irish66's picture

DAX positive...hum

danger close here's picture

Germany opposes a phrase in a draft conclusion for Wednesday's EU summit that calls for the European Central Bank to continue buying bonds in the secondary market, Chancellor Angela Merkel said on Tuesday, sending the euro lower.

GoldBricker's picture

Is 'analysis' now reduced to the point of guessing exactly which card in the house of cards will be the one that topples the structure?

If it's that much of a problem, governments could simply declare that henceforth their courts will enforce no derivative contracts. They cancelled gold contracts in 1933 in just this way.

  1. Screw things up
  2. Declare an emergency as a result of your own screw-up
  3. Do whatever it was you always wanted to do anyway
Tense INDIAN's picture

off topic but this is a nice one ...they are moving ahead with their PLOT

SheepDog-One's picture

The similarities are pretty eerie.

Odin's picture


Adbusters is not owned my "zionists"... pure paranoia...In fact, the have actually been accused of being anti-Semitic if you do the research... These OWS kids are just un-informed, disillusioned, and probably mostly jobless people who do not understand the root cause of their anguish. They are right to protest, but they do not know what specially to protest. They need leadership...

Use of Weapons's picture

...which is the last thing any popular movement needs.


They're working it out, trust me. Basic democracy is a bit slow.1


Btw, these kids are mostly Gen Y - means they were weaned on the intarweb, they're usually aware of the more out there conspiracy sites. What they lack is the 1970's paranoia & fear over RL political paramilitary groups - something that they might learn the hard way.

  • 1. If only there were an App for that
Problem Is's picture

Nice to link to some history... but again we have FullRetard as:

"dismantled the Russian Republic of Czar Nicholas."

Never Let Facts Get in the Way of Revisionist History
As the autocratic regime of Czar Nicholas was a looting oligarchy of hereditary lords just like his cousin King George of England and present Britain...

Hence, one can see this MI5, City of London disinformation slant "dismantled Russian Republic of Czar Nicholas"...

This revisionist fallacy of the false dichotomy is being spread to scare the sheeple away from even thinking of dethroning the banksters who currently rule the system and own you and me with their fractional reserve counterfeiting....

PAPA ROACH's picture

Europe better start loving the printing press....................sooner than later.

hbvyh's picture

time to's bullish!!!!

max2205's picture

TPTB are making sure no CDS trigger happens...even if they have to change the rules....

Saxxon's picture

You notice the language used repeatedly . . . 'terrified' of what might happen . . . the banks know who has what CDS, this is a bluff to frighten the sheep . . . Goebbels would have been proud.

The international banks are lampreys feeding on the healthy sector of the populace.

[Google a few photos of a lamprey and tell me otherwise!]

slaughterer's picture

Sell the news today, tomorrow it will be too late. 

SheepDog-One's picture

They got nothin! They stretched it out for a couple months with the carrot and stick rumors and cancelled meetings, now they have to show the numbers and it will impress no one. 

xPat's picture

I think it very likely that the EU governments will simply pass a law saying that this is not a credit event, and that CDS shall not be triggered. I'm not joking here. Consider that they recently proposed with a straight face to prohibit rating agencies, by law, from downgrading sovereign credit ratings.

The solution here (for them) is to take the big haircut, and declare as a matter of law that it's not a credit event. Yes, what I am saying is completely absurd. Fits, doesn't it?


ZeroPoint's picture

Bank of America is a foreign CDS writer. How can they stop bond holders from demanding their insurance payouts?

youngman's picture

"Give me your gold..or terrible things will happen"....we will soon hear this from the Bankers

SheepDog-One's picture

Exactly. And what would it really take? A speech from ZeroDamus about how he wishes he didnt have to, but just signed an Exec Order that youre a felon after the grace period 48 hours from now unless you hand over your gold to 'save the country'...its not a stretch.

ZeroPoint's picture

And what's worse is that order won't be applied equally. They will raid precious metal IRAs and bank safety deposit boxes.

Wealthy people holding offshore will get a pass.



ZeroPoint's picture

So let's get this strait. The ECB does not have the money to backstop the increases in the ESEF fund, and yet the can't allow a credit event to seize the markets.


They are going to print or they are going to rob the plebs. Either way, the plebs are screwed.

SheepDog-One's picture

Yep, and even if they go all-out retard printfest...then what? They still got nothin.

drivenZ's picture

right, so theyll take a 20-30% haircut and throw a bunch of other measures on top that will last them another 6 months. sounds about right to me. world collapse will have to wait. 


don't know who junked me, but this is what happens. Those people that think the collapse is coming next week or the week after are mistaken. Remember the debt ceiling debate? back in May? now 6 months later we're hearing talk that the super commitee may not get everything done and of course they dont make the reforms or have any authority to do so. So any reccomendations they have would probably keep being stretched out. Mandatory cuts dont take effect until 2013, so keep on waiting. 


Johnny Lawrence's picture the banks might actually have to take a loss?  Did hell freeze over?

buzzsaw99's picture

nice to have such a huge gaping gray area built into the contract so the issuer can weasel out of having to pay.

Johnny Lawrence's picture

If I recall correctly, the ECB is THE largest holder out Greek bonds.

Problem Is's picture

"in particular on the potential trigger of a bank run in Greek institutions and the scope for contagion to other EMU countries."

The Bernanke Has The Answer
Bald Bennie has the answer on the worry over depositor withdrawals and bank runs...

0% Required Reserve Ratio...

Ahhhhhh, The Bernank is a "brilliant" PhD Economist from one of the "right" schools, of course...