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ISDA CDS Trigger Decision Is Unanimous
EMEA DC Statement
March 9, 2012
In light of today’s EMEA Determinations Committee (the EMEA DC) unanimous decision in respect of the potential Credit Event question relating to The Hellenic Republic (DC Issue 2012030901), the EMEA DC has agreed to publish the following statement:
The EMEA DC resolved that a Restructuring Credit Event has occurred under Section 4.7 of the ISDA 2003 Credit Derivatives Definitions (as amended by the July 2009 Supplement) (the 2003 Definitions) following the exercise by The Hellenic Republic of collective action clauses to amend the terms of Greek law governed bonds issued by The Hellenic Republic (the Affected Bonds) such that the right of all holders of the Affected Bonds to receive payments has been reduced.
The EMEA DC has resolved to hold an auction with respect to the settlement of standard credit default swaps for which The Hellenic Republic is the reference entity. To maximise the range of obligations that market participants may deliver in settlement of any such credit default swaps, the EMEA DC has agreed to run an expedited auction process such that the auction itself will take place on March 19, 2012. In light of this expedited auction process, market participants should submit any obligations that they would like to include on the list of deliverable obligations to ISDA as soon as possible.
Full determination:
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Game Over, bitchez!
Time to print.
Will there be a major PM blowout sale?
Hope there is. It will be the last one for decades to come.
Nothing will happen, as Ben knew weeks ago how this would play out. Its all been orchestrated by those doing God's work.
So this is why you buy insurance.
ISDA Terrorist Extremists!
SHTF....in a couple of seconds!
Happy Friday.
market seems to be taking it all in stride...
Online banking will be among the first to be taken out.
Then the ATMs.
Bankrun 2012.
Probably a bit premature on that... First gold has to go to much higher levels, capital controls imposed, etc.
I give it another year.
Remember: Rome wasn't burnt in a day.
nobody, i mean NOBODY saw this coming.
The big story is when this happens, and oh it will happen, with Spain.
Think I'm pessimistic rather than realistic?
Go ahead and explain how Spain will be saved and who will save them (use arithmetic to demonstrate your point, if you are able to).
Spain has already begun to snowball off the cliff's edge.
Try and buy CDS on Spanish sovereign debt default in - give it couple of months or so.
German jawboning taking place right now about 'new centers of power' and a lot of other re-arranging of the deck chairs? Yep.
The only real question out there now is whether they can marshal all the resources, with a unified Germany and France (good luck with that...which will have a much different composition in its government, inevitably at greater odds with Germany), to put a firewall around Italy, which I wish them the best of luck with.
But it's not going to take the inevitable default of Spain, and the possible default of Italy, to spread the pox. The ragin' contagion is already out of the box.
The true 'game over' part of this is in the qualitative impact (thank you, Mr. Bass). The question isn't really how much will it cost everyone to settle all this out, as mentioned earlier they'll just print it. The real impact of this "event" is the confidence hit to sovereign debt in general and the fact that restoring that confidence will be impossible.
The European circle-jerk-debt-whirlpool now can claim the first true western default in over half a century and just that fact will add 50 basis points to everyone's next round of financing (well ... almost everyone's). The seal has been broken and the first visible trickles of piss are running down Europe's leg. Next up, Portugal or Spain or Italy; and while we begin to run through the same Kabuki theater with those doomed economies, you-know-who will 'disappoint' everyone with their inability to stay committed to meaningful austerity and the confidence/cost-of-debt all around will take another hit.
Late next year, Europe will look like an emergency room with new victims staggering in by the minute demanding free health care. As transfusion are shipped in from the US by the truckload, suddenly we'll look out and realize that Japan is lying dead in the rotunda with an 8-handle in their hands. As everyone pauses to absorb that, a nurse will rush in and report (too loudly) that some of the doctors are starting to run fevers ...
Year 2000 redux.
Out with a whimper.
"The EMEA DC has resolved to hold an auction with respect to the settlement of standard credit default swaps for which The Hellenic Republic is the reference entity."
Call me stupid if you want, but what the hell does that mean? Auction? Auction what? Have I been missing this whole thing all along, is the CDS thing really done on Ebay?
It means the TBTFs have a way to make the CDS's pay...for themselves, while screwing the daylights out of all the smaller financial entities, Sovereigns included. I am somewhat surprised at this, because awhile back Ann Barnhardt, of whom I'm a big fan, said they wouldn't declare a Credit Event at all. Just ignore it. On a related matter, Ann, aka Joan d'Arc II, yesterday evening launched a fairly ferocious attack on my humble self at her site (http://barnhardt.biz) where she conflated me with several possibly less friendly correspondents. Since she's gone so public, and may well delete my e-mail reply w/o reading it, I hope fellow Fight Club members will indulge me for I moment as I do so here:
SUBJECT: (almost) Made my Day
Since I consider every day a Gift from God (the true God, not your PaulineRomanMysteryCult), I can't say you made my day. Close, though, and thanks for 2nd promotion. First, I'm a "perverted, evil monster", and now I'm Satan Himself and, indeed, the very apotheosis of the "universal story of Mankind, fallen". Actually, you have conflated two, possibly three of your e-mail correspondents in this latest rant. I never inquired about your "ethnic heritage"; never suggested you were a Jew; someone else did. Judging from your physical features and expressive behavior, I'd aver you're Anglo-Saxon. Nor did I inquire about your prior religion. Again, someone else. And, yes, I did proposition you, but that's not "rape"; you're a good looking woman, these things happen. In fact, now that you've hunted down my address, feel free to drop by anytime; phone first, in case I'm on the road. You can be on top, at least for awhile, and I promise not to claim rape. Now, I'm going over to ZH, flip a few hand grenades, spread the Higher Wisdom. Back later to deal with your comments on the grand Marxist/Islamist conspiracy...(etc.)
WTF, mate?
Playing pattycake with a religious gal makes him feel all naughty and shit.. However, this girl would kick his ass for him.. I notice you did not comment on her other revelations regarding your ahem, habits as it were.. Cf?..
Yaawwwnnnn....google "nun", image of. There's a Bad Habit. I think if "35-year-old virgin" Annie B. got some good lovin', she'd be way less wingding. As it stands now, never mind the Jihadists....we better hope she never gets her hands on a nuclear weapon.
Too bad you're probably not Jewish. If you were, and you did get her in the sack, the memory of it would be one Hell of a deposit for the spank bank!
This is funny. Way funny. But would someone please explain the Auction language? I'm a frequent Ebayer, but still don't get it.
Obama really should have intervened here. This is a matter of national importance as it severely impacts America's top tier investment banks. I'll admit it ... I'm seriously thinking about voting for Mitt Romney this year. We need a President who will stand up for our systemically important financial institutions, even across national boundaries. This simply inexcusable. I'm very disappointed.
Yes, it's taking far to long to burn. We need more gasoline!
There shouldn't BE any systemically important financial institutions.
systemically important financial institutions & Too Big to Fail are not the same CIABS
/s/
MDB you are the koolaid in my Everclear punch
i'm voting for kodos.
Crack another cool one MDB, it will be just fine. He promised he wouldn't cum in your mouth.
TO: MDB
"We need a President who will stand up for our systemically important financial institutions, even across national boundaries. This simply inexcusable. I'm very disappointed."
dude....i'm with you...what we need is a brokered convention with none of this sissy koch 'bro half stepping...no jeb bushes...no chris christies. there's only one man for this job and that's 'nose candy' jim cramer..... he'll need a front running mate he can rely on...i think larry 'bohica' kudlow rounds out that ticket nicely.............
FUCK OFF MillionDollarBonus - you fucktard piece of shit!
MillionDollarBonus: "I'm seriously thinking about voting for Mitt Romney this year."
no doubt you seriously considered voting for Bumma last time.. look where that got you
don't take yourself so seriously, nobody else does
I agree with you regarding Mitt Romney, but on the rest you can't be real...I have read your responses on many things going back a while, I am hoping you are just a smart person with a very clever and dry sense of humor...
Obamatron is too busy not driving Chevy Volts...
@ Ahmeexnal
Just pulled $500 out of the bank 15 minutes ago, all OK.
In Peru? You can have four girls all night long for that and dinner and drinks for five.
TCT here, dochen, long story.
I'm 56 and will happily settle for the ONE peruana I have. The drinks part sounds good though.
We will be in Peru soon, trying to figure how to sell more bearings. And eating yummy food...
Before we go, I will be pulling $500 per day out of the ATM...
I was there.
For goodness sake - someone call John Corzine. Can't he "vaporize" some of these obligations?
He's really a specialist at vaoprizing positive account values.
Better call Joseph Massino...he knows how to get the money back from Greece.
What would happen if some account vaporized John Corzine?
Mother fucker. If this is baked in, this world is "fuck All"
Well, I hope I'm wrong, but my cynicism has grown like the US debt, over the course of the last two years.
Its all almost certainly a charade. Only if the events of Iceland are repeated, do we have any chance at being free of the slave yoke of the banks.
"My Island tis of thee,
sweet island of LIBERTY
of thee I sing."
If it was not for the volcanos and the fact I hate seafood, I would be makin' the Iceland move.
Horny blondes named Helga, I'll take my chances with volcanoes..
Hey hey - the whole dam country is hot...
no volcanoes...just the occasional hurricane.
http://en.wikipedia.org/wiki/Conch_republic
Prelude to the secessions to come...
€ 3 billion exposure is nothing. Net is net, and gross was meaningless. Completely predictable.
The scaremongering banks were just completely dishonest about the "Lehman II" impact the Greece default would have had. Shame we did not get the real default in Greece, as that would have been just as meaningless non-event.
Instead we got this pointless Bailout II.
Not pointless for the banks that got bailed out of paying up on cds on 100 percent of the bonds.
So, when do we see the ISDA and the banks start fighting over who gets left holding the bag? Is this indeed Game Over?
When we realize that there aren't enough lawyers for this one.
Doubtful this is "Game Over" since this is "THE Game."
GS is the Pimp. The PIIGS are the whores and the sheeple are the the John.
Everything just might trickle down to some twenty ninth lower tier LLC shell entity that has zero assets and no capacity for anything but took all the risk and, coincidentally, needs a US Government bailout.
Somewhere, somehow, the US Tax Payer is going to take it in the ass one more time, with no reach around.
The market is being run by HFT's. To them, there is no game over.
Thanks macho, no NOT game over.. Another opportunity to break the law and condition you to whine and cry and not do shit.. You should just watch this for the methods of lawlessness and the propaganda methods so when the shit gets real your ready before the neighbors.. That way you eat their dog first..
Only one more time? TG I was worried...
Sad but true nara. However the extending and pretending is almost over. There is a great conscience enlightenment taking place.... TPTB know this and are preparing the lifeboats...
lifeboats? is that what FEMA camps/gulags are called?
lynch them all
The FEMA camps are for the Jersey Shore/Nike sneaker riot types who roam the streets after martial law goes into effect...
So is my AK47 . . . .
The NEW "section 8 housing". The NEW food provision system. Better there than on the streets. About time really. I always thought tent cities would teach the lesson better than the luxury they get now. Round up the brown people...and put them to work damn it! We wouldn't have an illegal immigrant problem if our welfare system wasn't so generous.
Yea really jus_lite, who do they think theyre 'fooling' at this point? No one with any real money, thats for sure. So therefore its pointless, and therefore the endgame is near.
the game is just starting....there is a feeling that there is a surprise in store
IT DOESN"T SAY DEFAULT
<----- "This is transitory"
<----- "Nobody could have seen this coming"
wtf.. Wasn't there a report saying a Greece default would cost $1T for the Eurozone to plug.
And god knows what the cascading effects would be. Yet the equity markets are green..
Probably because everybody knows the only way to cover this off is by more money printing.
So then here comes $6 and $7 gas real soon if we're already looking at flodding in further trillions. Should make for a real interesting spring/summer, not to mention fall.
Because, for the most part, there is a correlation of "The US$ vs everything else" and has been that way since the crisis started. When I see the trend break and it goes commodities vs. the world, then I will know the end game is here.
5 dollar silver? That beeping you hear is my 19' truck backing up ready to load up.
I think he meant $5 gas.
sorry to disappoint you, ZeroPoint. i've already loaded up all the silver at $20 and there's none left. but we do have some SLV certificates in stock if you care to...
Time to print.
Gold up. USD up. Indexes up. Wishful prints or are all western fiats tanking?
Amazing the ISDA actually triggered the CDS's. I thought I would never see the day.
Completely un-expected except in bazaaro opposite world of CNBC.
We ain't seen it yet. I don't know. Chances are someone will change the rules retroactively somewhere to keep the Ponzi up a little longer.
Someone needed to do something that looked decisive. Stay tuned.
Retroactive rule changes! LOL. So true. Been the story de jour the past _______ months. Fuckers.
What if no one meets the Auction reserve requirements?
I'm completely lost at this point.
They don't have a choice. If they don't trigger it then the whole system with CDS will collapse. Every one would sell there CDSs tomorrow. Why own insurance if the insurance company never pays. Insurance companies must pay to kepp customers.
Exactly. Easier just to print up some more money and pay out.
But more importantly than getting out of CDS, everybody would get the hell out of sovereign debt. If you can't hedge it, then you don't want to be in it. this is just more of the CONfidence game of sovereign debt. Let's keep this merry-go-round spinning just as long as we can, say TPTB.
bingo. the size of the bond market makes the stock market look like a day care center. DO YOU KNOW WHERE YOUR CHILDREN ARE?
hmm, but the fact of the matter is, the bondholders did in fact get fucked over really badly. Whethere there is a token CDS payment to a few holdouts is irrelevant.
If you are a bondholder you can expect to be fucked over really badly. They'll just put a gun to your head, tell you to sign and poofff it's all voluntary, except for a couple of piddling little hedge funds.
CDS are effectively useless now.
>>"Why own insurance if the insurance company never pays."<<
Now you are catching on! The game is already over!! Ever see a game of musical chairs?
Yep, and it really sucks when they plunge into their chairs and find they were all just termite eaten splinters unable to hold even a few pounds.
lol. Can I buy a swap against some of these mixed metaphors?
They can't sell if there isn't another side to the transaction.
Put it on the books with the rest of the garbage marked to par...
Funny thing but the largest CDS holders of Greek default are Greek banks.
That article appeared here, that's right!!
They had to trigger it at some point or the CDS market would die...you never kill a golden goose.
My wild guess is the banksters are underestimating the amount of risk out there. "Ahhh, it won't effect us. We can just sell more CDS and get bailed out!" Didn't stocks rise a few days after the Lehman BK before crashing everything?
So I guess we now know that JP Morgan and Goldman are long Greek CDS
Yeah, they helped Greece lie about how bad their debt was so they could get into the union. They knew they would default.
They make money coming and going. There is no sherrif so why the fuck not?
Eat it Bitchez!
i think they convinced everyone that no "Credit Event" will happen and started buynig shit loads of CDS's worth Trillions
things will unfold soon
Do not worry; it is a set-up and has been rehearsed a hundred times for various options.
ISDA = Government of Greece = lenders = Goldman Sachs
The best what Greece population can do is destroy their financial economy
The population will win.
Not mentioned is the fact that the collateral for triggered CDS is the last batch traunch of Greek Bonds (its all in the fine print).
Finally, we can open a new page of our life. Game on.
Especially for the banks that wrote these CDS contracts. Oh wait, there are still German taxpayers!
Not yet Gene, not yet -- they still haven't rehypothecated the bond derivatives, at least not to the Nth of the Nth.
game over?
wtf happened?
auction what?
i read it
i dont get it
Auction will determine the present value and then the losses have to be paid by those on the wrong leg of the contract.
This ends the game of "kick the can" about sovereign defaults and CDSs. The real game starts now as we see who wrote contracts that they cannot cover.
yes
but what are they auctioning exactly?
to whom?
how is this process used to determine value?
arent auctions usually to sell something someone wants?
in this case, what would that be?
Most auctions are there to sell things that no one wants. It's called price discovery
i'm looking for a complete explanation
point of fact, even the wiki page doesnt explain it to my satisfaction
Do the cds trigger only for bonds which were not swapped - the hold-outs?
to be paid by those on the wrong leg of the contract
Who is the payor, that is the question (or was it "to be or not to be ..."?) - and what if the answer remains the same old well worn lucky rabbit foot rhetorical fete `de night of the living dead: the old "full faith and credit" of the ECB shtick?
Too much junk paper leads to spontaneous combustion...
W00H00!!
http://www.moviewavs.com/0084356043/MP3S/TV_Shows/Simpsons/default.mp3
The ISDA, a private organization that rules on credit events, said that if triggered, overall payouts on CDS linked to Greece will be below $3.2 billion.
Zzzzz Game Over? you're playing the wrong game...
It's not "Game Over". It's just the opposite. This was the only way to keep the ponzi going. If they didn't agree that this was a default, the CDS market would have vaporized and the global CDS hedge market would have collapsed. That would have been "Game Over". This was a small (~$2B I think I heard) payoff to keep the balls in the air.
buuuuuuuuuuuuuut....
eurozone law can't have a member default on it's debt
This was a small (~$2B I think I heard) payoff to keep the balls in the air.
ding, ding, ding...and..... we have a winner!
Two billion doesn't seem like too much to pay, if it keeps the other players from leaving the CDS casino.
The way it was played would not support confidence in cds - many took a beating
Problem is....We know the name of the game but only ISDA knows the rules!
It will be interesting to see just how this plays out......
And nothing happens?
It's hard to feel like we're not being played, isn't it?
More like urinated and defecated upon..
Golden showerz, bitchez!
That's Goldman, bitches. Gold. Man. Sacks.
Cleveland Steamer, Bitchez!!!
The questoin is how hard are we being played and when will the real pain kick in.
Or is it game ON! Bitchez.
GAME OVER MOTHER FUCKERSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
LOVE YOU TYLER
Jumbo Ozaki: "Oooooooooooohh UNBEEEEAVABLE"
Good.
Now we know the answer to the question we've been asking for the last year.
And the answer was March 9.
Actually its the 19th... :)
The shit doesnt hit the fan until then...
After the 19th you can put the 23rd in your book for the next one...
thanks to be the first to drop the rumor lite
why on the 19th? further details needed
Investors are Qing up , initial claims are 3 billion only, by the 19th it would be 120bn
thnx
The 19th is the date that ISDA set for the Auction.
can't wait
btw get an Avatar Battle :>
but if you were betting that someone or several someones couldn't pay out on CDS... or, that paying out would require a large sell off in some equities... wouldn't you sell now and get out before everyone else does?
just wait, we still have time for the selling .. things wont be good from now onwards
i would think offloading commodities first, or throw more trash at the fed window, seeing how this $3b isn't a large number these days to cover...liquidating equities could be the spark of the the end and blood in the streets (if it triggered an equity market collapse). mess with pension funds and the sheep will stampede.
Fuck the Sheep, i dont care if the markets drop to Zero!
And for Gold & Silver dropping, that would be sale and an opportunity to buy some more.
If the 'markets' drop to zero, what are you going to buy your gold and silver with?
BTW...what is the EMEA? A determination committee, I see that, but where did this group of 15 originate?
I know, I know. You are right resurger.
>>"has agreed to run an expedited auction process such that the auction itself will take place on March 19, 2012. In light of this expedited auction process, market participants should submit any obligations that they would like to include on the list of deliverable obligations to ISDA as soon as possible."<<
Thats when they fight over the scraps... and the 23rd is when the banksters eat humble pie
true that
His name was Robert Paulson.
Avanti popolo alla riscossa.....
.....bandiera bianca, bandiera bianca!
A venti chai latte alla rockas.
what language is that?? they must be terrorists!!
Good.
Not that they had much choice but good.
And Hoo-ray - a financial derivative that more or less performs as designed, under stress.
This is super bullish.
Did you say "this is super bull shit"?
Holy Silver Eagles, Rocky.
Now that you mention my lil friends, I just bought more today! Prep continues, bitchy ones.