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The Greek PSI Lawsuits Begin
You didn't think investors would voluntarily give up on the potential to generate returns between 50% and 333% now did you following the 'coercively voluntary' (aka Schrodinger Spanish Inquisition) Greek debt exchange? Because here they come. Reuters reports that a Hamburg law firm representing 110 Greek bond holders have formed a class action group and intend to sue banks and the Greek state following the Greek swap. It is unclear yet if there are any hedge funds participating in the group, or if these are the entities represented by Bingham. Most likely not: those will almost certainly seek non-class action status so as not to dilute the legal effort, if not fees. However, now that the precedent is set, look for the onslaught of lawsuits to start in earnest. What is probably quite important is that European taxpayers will now be delighted to know they are paying the Troika lawyers' $1000/hour legal fees (and uncapped expenses).
From Reuters:
Lawyers in Germany representing 110 Greek bond holders said on Monday they have formed a class action group and intend to sue banks and the Greek state following last week's Greek bond swap, which slashed more than 100 billion euros from Athens' debt.
The Hamburg legal firm said most of the investors had spent 100,000-500,000 euros on Greek paper, although the highest investment reached 3 million euros.
It did not name any of the banks it might targett.
The suit, likely to be filed in Washington, will claim banks failed to properly advise clients about the risks of Greek paper and seek compensation.
Separately, lawyers will argue that Greece, in orchestrating a debt swap, infringed against a German-Greek investment treaty intended to protect German investors from political risk.
Lawyer Matthias Groepper of legal firm Groepper Koepke said those who had agreed to the terms of the debt swap would be unable to claim compensation.
This would prevent any suit derailing the overall deal.
And here is the official google translated statement from the law firm:
The State shall be liable - Investors are preparing lawsuits lawyers. Groepper KÖPKE has established an interest group for victims. More by lawyer Matthias Gröpper.
Hamburg / Athens, 03.12.2012. The Hamburg-based investors Groepper KÖPKE lawyers lawyers have formed a protective association for buyers of Greek bonds and represent the demands of more than 110 Greek bond offerings. The investor advocates are preparing the first compensation lawsuits against banks and the state of Greece.
Have cut the debt are private investors who bought Greek government bonds, particularly affected. You lose the current state of affairs up to 90% of their investment.
This must not be. On the banking and capital markets specialist national institute of investor protection firm Groepper KÖPKE lawyers has formed a protective association, representing Greece-bond claimant. Attorney Matthew Gröpper: "The victims have been discussed frequently wrong. If you did not tell the bank that they can lose their entire effort, she is liable. "The banks should have known at least since the Argentine collapse that government bonds are not sure.
In addition, should adhere Greece. The Greek government intends to investors who have not expressly agreed to the debt, effectively expropriating the retroactive adoption of CACs. Gröpper lawyer: "This is illegal. Between Germany and Greece, is an investment protection agreement. The contract protects the German investors to invest in Greece to political risks. Greece, the investor in case of Expropriation compensation. And that we believe would be a case of expropriation. "
The claims must be made ??in most cases in London, Washington or in Athens. Groepper KÖPKE lawyers is working with American, British and Greek lawyers.
Greece is broke, I get no money either way. Gröpper lawyer: "This is not true. The state has significant assets outside its territory. Just think of the messages. These are valuable properties. In a lawsuit against Argentina, an Argentine warship was seized. This brings millions. This could be related to the settlement of compensation claims against Greece also be conceivable. "
Groepper KÖPKE advises lawyers: injured investors should have their claims by the banking and capital markets law specialized lawyer. Many victims can claim damages.
Contact Person: Mr. Matthias Gröpper lawyer, the lawyer Ms. Catia Sofia Neves Sequeira
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The market isn't worried.
Irish PM about to "voluntarily resign", as the dreaded R word surfaces again:
http://www.marketwatch.com/story/ireland-throws-grenade-into-eu-fiscal-c...
Irish government announced that Ireland would be holding a referendum on the European Union’s Fiscal Compact Treaty before the end of the year.
The English law bonds are yet to be tendered in right ? These only reprsent the Greek law bonds that have been tendered in.
No! much better to be paying some ridiculous amount of greeks doing nothing and then blame the evil banksters.
R word?
....
RESISTENTIALISM?
RANARIAN?
RECTALGIA?
RETROMINGENT?
RHONCHISONANT?
RUPTILE?
....
RIGGER?
Rectal Rupture.
Rhinoceros?
Let's c if the Irish people man up and do like that famous you tube Irishman said they shoulda done long ago....
Tell the EU and the bankers to fuck off!!!!
Peanuts for the banks, who will just borrow the money for free from the Fed anyway.
BUT, undoubtedly some of the advisory statements from the investment banks entered into evidence by the plaintiffs should be good for some lulz.
There is no market. Ignore it.
"Troika lawyers' $1000/hour legal fees (and uncapped expenses)."
Sugar Daddy is a lawyer?
Whowouldathought?
i am sure the courts will treat them fairly.....maybe that fat fucking greek fin.minister is the judge....like in greek acres with mr. haney....
You had to know that there was going to be lawsuits, no way in hell it goes anywhere....
Rally on....It's all Bullshit!!
Nothing new...sissy cry babies are an everyday occurence in markets.
And then suddenly one day all the blindly optimistic become instant sissy cry babies overnight.
small claims court
This is getting insane I tell you, insane. Once this whole mess finally comes into the open and they find out that alot of this debt wasn't accounted for things will come to ahead real soon.
'However, now that the precedent is set, look for the onslaught of lawsuits to start in earnest.'
Yep, that usually follows. This is going to be epic, all of Europe will be a courtroom and nobody will know what the fuck is happening, just nightmarish, Kafkaesque bureaucracy proceedings and an unbelievable mountain of bullshit coming to surface.
Create chaos, obscure blame, convince the peasantry that "we're all in the same boat," etc. Whatever it takes for them to eventually foot the bill in the end just to "make the uncertainty stop." It should be quite the performance by the oligarchy.
"No one saw this coming...."......(bankers before Congress)
"I have no idea where the money went...." (Corzine)
"I acted on teh advice of my accuntants...I am only a clueless CEO...." (Enron)
Standard defenses.....oddly, if the averag eJoe ever told this to the court he would be found in contempt, fined and imprisoned....
There is blood in that turnip?
Nope, but there is still some in the ECB and core EU.
110 Greek bond holders to sue Greece, banks over debt swap
BERLIN, March 12 (Reuters) - Lawyers in Germany representing 110 Greek bond holders said on Monday they have formed a class action group and intend to sue banks and the Greek state following last week's Greek bond swap, which slashed more than 100 billion euros from Athens' debt.
http://uk.news.yahoo.com/german-lawyers-sue-greece-banks-over-debt-swap-165757344.html
thnx for the link
Greece should in turn sue Germany for the Great Famine of 1941:
http://en.wikipedia.org/wiki/Great_Famine_%28Greece%29
FUCK!
Wait til discovery shows that Greece ordered its banks to pay sweeteners to refuseniks who would not participate, basically redeeming some of their bonds euro for euro, in order to claim a higher participation number.
But in keeping with governments doing ANYTHING to keep it going, I expect these lawsuits to be dismissed or postponed indefinitely.
Living in a lawyer's paradise.
Hell, just say it.
$$$$
...yes...if only because there are far more banker jokes these days.................
Lawyers are sawbones?
domain name available for only $699....barely the cost of a banker lunch.....
http://bankerjokes.com/
deadbankerjokes.com is available for $10 through godaddy.
go figure, bankers worth more dead than alive............
Did you mean $6.99 above?
Moral of the story: don't issue debt under an external jurisdiction if you think there is a danger of default.
The lawyers always seem to win -- funny how that works -- not like a majority of bureaucrats are lawy... oh wait
Law. What law? Time to change the law.
Rollin rollin rollin keep them doggies rollin Rawhide.
Head em in. Move em out. Rawhide.
"If the bond doesn't fit..."
A Greek and his money are soon parted......
Beware Greeks wearing shifts.....
Once again it will be the lawyers that "win".
Good luck with that.
Re: "Golden Rule".
LTCM set the precedent. Then Enron, Worldcom and finally the neighborhood. America decided if you wear Armani you can't possibly be criminally insane.
While I think general comments on bankers and lawyers are unfounded, I am confident that there have been hundreds of attorneys that not only rode shotgun on the whole fianancial fiasco, but specifically designed it... and also built in obfuscation methods and legal barriers to discovery. These are likely different than, although professionally acquainted with, the people doing the litigation. So... the folks getting $1k/hr now are likely just in the right place at the right time. Must be nice.
What a mess. And at some point, maybe soon, it will Matter. This market scares me. Do not want anything to do with it. But am watching the VIX. I have seen this movie before.
Wunderbar! I added some of those 3,000% bonds to my IRA....better then my high yield USA savings rate of 0.000001%
Go long Europe law firms? Oh wait, they are all private partnerships...never mind. Go long then on the Ukraine Europe supply lines?? Oh wait, those are all self-employed entrepreneurs...
As I said on the VIX post, my money is on 20% dow drop within 6 weeks. This could be the trigger.
Robert Plaze, deputy director of the Securities and Exchange Commission’s Division of Investment Management, warned CCOs during the conference that the newly created Asset Management Unit that’s housed within the SEC’s Division of Enforcement “is dedicated to suing you.”
http://kauilapele.wordpress.com/2012/03/12/benjamin-fulford-3-13-12-it-is-time-to-storm-the-bastille-vive-la-revolution-satan-has-left-the-building-universe/
"In one prong, the Chinese government has announced it will start the mass installation of wind and solar power devices on rooftops world-wide in order to free humanity from the cabal controlled energy grid."
WORLD-WIDE - F**KING HELL ?!
This electrician guy produced a homemade solar panel for $197 and the guide sells for $27
http://www.homemadeenergy.org/special/mb/index.php?tid=lewrock&13fcc8653be84308acc4cd57d4135038=
In the last 2.5 years, 42,000 people have produced their own homemade solar panels.
"In another prong, the cabal controlled central banks will be asked to make good on broken promises by redeeming financial instruments backed by gold stolen from holocaust victims during World War 3."
Would World War 3 be the USA-USSR cold war of the late 20th century ?
"The third prong is still being kept secret but essentially it is a promise to start a bottom-up revolution in cabal controlled countries like Italy, France, Germany, the UK and the US unless these countries stop their ceaseless war-mongering.”"
http://kauilapele.wordpress.com/2012/03/11/interesting-graphs-related-to-the-254-resignations-from-world-banks-et-al/
Gasifier costs about the same to produce.
Try running a tractor or car on a solar panel.
Or a bulk oil carrier.....
OT, but did anyone see the Kyle Bass interview on CNBS?
He was touting "physical delivery" of gold, like he did with the TX university system.
Unfortunately, he seems a little confused. Instead of shipping it down to Texas, like he did with his $20 million in nickels, he negotiated a better bps rate to store the gold in the HSBC vault, at the Crimex.
But he seems satisfied. "The gold is there, the bars are there, and they're ours."
Evidently, he doesn't read ZH as much as his videos are posted here.
For about 4 years I haven't purchased any physical , but recently
i had a bad dream (about gold) ...
So should I buy now ?
You get a better return buying salvage equipment.
All those boating accidents...
that could be him 'covering his ass'.
Covering his ass? are we talking biblical covering here?
Just asking...
if you got gold and you store it in a bank, you're a f***ing idiot!
i like how the american courts have to be burdened with germans having issues with greeks............
Blah blah blah, wake me up when the trreasury auctions go fucking bidless. Then and only then will things get interesting.
Right. Got to keep the public pension ponzi from pancaking.
They will end up paying themselves if fraudclosure gate is a precedent.
You know laws were made to allow people to steal from one another without having to resort to murder. But, there comes a time when the laws get to be so broken that the old standby might offer the appropriate solution. Organized crime warfare dudes. Turn down the lights on with the show.
Cue up Warren Zevon "Lawyers, guns and money". The shit has hit the fan.
why are Investors holding Greek bonds complaining? They should thank their lucky stars for getting anything back at all. They made a bet and lost. Get over it and stop wyning.
lol and after this who do you think will ever borrow more money to greece? perhaps the new world order so you will become their slaves.... oh wait............ you're already their slaves.........
My first reaction to the financial collapse in 2008 was that it's going to be a great decade for lawyers. I think we can extend that to a generation or so now, or how ever long it takes for the whole thing to come crashing down.
well, actually it was a good run-up too... simply because of the number of business transactions at the peak of the bubble (it is THE determining factor in how much litigation occurs). You had plenty of lawyers helping with mortgages, loans, real estate transactions, etc.
Now, we get to flip the page... put on our other face... and ramp up the bankruptcies, foreclosure defense, distressed real estate transactions, etc.
Ultimately, the need for lawyers is simply the derivative of an ineffecient political and economic system. The more inefficient it gets, the more lawyers are needed... simple as that.
They will be as successful as the lawsuits against MF Global and the CFTC. They'll all be dragged out longer than the monetary system will last whereupon it will all be wiped out and the PTB will hide behind force majeur and a global reset.
Did I read correctly. Those who were 'coerced' into agreeing the swap, can't claim.
Wow they're gonna be pissed now.
Come on markets can't you see what's coming.
EURUSD up Lol, Gold & Silver down, What a surprise.
I thought first out was always the least hurt. Yeah, wait for the herd retarts.
Wait. Wait. Wait, just one moment.
Are you telling me the TPTB in this didn't provide for some amnesty; or, more likely, didn't look at who was going to get burned and make pay-off side deals?!
Who could get burned? Who has the money to fight us? Shouldn't these have been two very early questions in this process?
Are you telling me that they thought, "Gee wiz, at least we're getting them some of their money back. They wouldn't dare put up a fight"?
Someone! Please explain to me how an outright default could have been worse? MSM, I'm looking in your direction.
what a waste of time of money. Unless you were living in a cave for the last 3 years, you knew it was coming. They should PSI their lawyers before it's too late and...eureka(!) buy some CDS covering the sovereigns of PIIS nations (G is out for the time being), or at the very least go to Vegas and have a blast.
Boy the PPT is sure using up that ESF fund to bash silver back down.
Fuck you timmy weasel Geithner and Ben Bernanke.
See you's at the hot lava party...Hahaa..aahhha...haaaaaaaaaa
bring your spears........and long tails.
Nobody wants the Schrodinger's Spanish Inquisition.
Paying lawyers to tell you that you were fleeced. That is the definition of pouring good money after bad.
So long as the lawyers are paid PIK in Greek Bonds there shouldn't be a problem but anyone who pays them in Cash is a real sucker
Bullish! The system works!
This is significantly important when the bond holders collect and then sell the assets they receive for pennies on the dollar and the mafias start buying state owned assets and run them. Power companies, Water companies, Garbage collection, etc.
Greeks, if you don't know someone in power GTFO now. This will be the fall of USSR all over again.
The Greek soveriegn debt CDS ( credit default swaps) are triggered and the ïnsurance"gets paid : where's the problem ? or does this not fit the greatonging media Greek Soap opera and hence doesn't get the immediate attention . . .here ?
http://www.reuters.com/video/2012/03/12/no-damage-to-cds-status-after-gr...
this news video may have been pulled by the time some readers get to the link.
http://www.reuters.com/video/2012/03/12/no-damage-to-cds-status-after-gr...
If "Deep Pocket Law" prevails in the EU they could go after the Troika or the EU in Brussels since it's their responsibility to see that their members honor their contracts. ...
Let 'em eat each other. Let 'em use their cherished fiat paper to wipe each other's asses. Let the lawyers and politicians be the boot lickers for the banks. They're all crooks and thieves. The whole lot.
They haven't achieved anything, they haven't created anything. Their productive net worth is ZERO. We need a good culling of the top herd.
the storm is coming!
http://www.cnhedge.com/
http://www.jinrongbaike.com/
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