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ISDA Finds Greek Credit Event Has Occurred Reports Bloomberg

Tyler Durden's picture





 

Total confusion around this, as there is no formal Press Release from ISDA yet, but since this one comes from Bloomberg, let's assume they have double checked their data. From Bloomberg:

  • ISDA EMEA DETERMINATIONS COMMITTEE: RESTRUCTURING CREDIT EVENT
  • ISDA SAYS CREDIT EVENT HAS OCCURRED WITH RESPECT TO GREECE
  • COMMITTEE DETERMINES AUCTION TO BE HELD ON MARCH 19
  • ISDA EMEA: AUCTION TO BE HELD ON OUTSTANDING CDS TRANSACTIONS

This despite refutations from ISDA 15 minutes ago that no decision had been reached. Of course, if this is a spoof PR that has gotten half the media world confused, the farce will be 100% complete.

And now preparations for the physical CDS auction begin (for a primer see here from 2009). Furthermore, there are those who point out that Greece has just over $3 billion in net CDS outstanding, so it should all be contained. Well, Lehman had $7.2 billion. Ended up requiring a $20 trillion bailout of capitalism.

 


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Fri, 03/09/2012 - 15:48 | Link to Comment redpill
redpill's picture

Credit event, bitchez

Fri, 03/09/2012 - 15:51 | Link to Comment taniquetil
taniquetil's picture

Holding physical bullion has rarely felt so satisfying.

Fri, 03/09/2012 - 15:53 | Link to Comment CClarity
CClarity's picture

Remember, we know that some of those banks wrote the language in such a way that not all the CDS purchasers will be satisfied with the "insurance" they thought they bought.  Same for the hedgers because it gets paid out over time and only in way that the language says.

Fri, 03/09/2012 - 15:54 | Link to Comment Comay Mierda
Fri, 03/09/2012 - 16:04 | Link to Comment MillionDollarBonus_
MillionDollarBonus_'s picture

No!! This is the WRONG decision. This going to seriously impact the balance sheets of some of the world's systemically important financial institutions. This is madness!!! I can't believe it.

Fri, 03/09/2012 - 16:05 | Link to Comment economessed
economessed's picture

The truth hurts.

Fri, 03/09/2012 - 16:11 | Link to Comment MillionDollarBonus_
MillionDollarBonus_'s picture

The truth? The truth is that these financial institutions are instrumental to the global economy. For goodness sake! We are talking about top tier investment banks and primary dealers here! These institutions are simply TOO BIG TO FAIL!

Fri, 03/09/2012 - 16:13 | Link to Comment narapoiddyslexia
narapoiddyslexia's picture

He's right about the TBTF part. He forgot he's supposed to be a troll.

Fri, 03/09/2012 - 16:42 | Link to Comment EHM
EHM's picture

What do you call a troll who is not really a troll but only pretending to be a troll for sake of irony?

Fri, 03/09/2012 - 16:47 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

personally, i call the fulking asswipe a 100% string-jumping cunt and a serious turd on these strings of toilet paper tyler publishes as a MSM puppet

Fri, 03/09/2012 - 17:32 | Link to Comment French Frog
French Frog's picture

So far this 'credit event' feels like a 'non-event'...

Fri, 03/09/2012 - 18:10 | Link to Comment Comay Mierda
Comay Mierda's picture

that's what i said when i screwed a Las Vegas hooker and afterward she told me she had crabs.  I just thought, prob not a big deal...

 

Fri, 03/09/2012 - 22:58 | Link to Comment blunderdog
blunderdog's picture

A troll.

Sat, 03/10/2012 - 18:08 | Link to Comment Elliott Eldrich
Elliott Eldrich's picture

Stephen Cobert?

Fri, 03/09/2012 - 16:17 | Link to Comment taniquetil
taniquetil's picture

I'm too big to fail because of too many Big Macs. Where's my bailout?

Fri, 03/09/2012 - 16:46 | Link to Comment Manthong
Manthong's picture

The government will rescue you, but it helps if you make yourself a hopeless case.

(Anybody can be hopeless if they try even a little.)

http://www.wpix.com/news/wpix-obese-man-cut-out-of-house,0,7150566.story

Fri, 03/09/2012 - 16:53 | Link to Comment _ConanTheLibert...
_ConanTheLibertarian_'s picture

And you're probably too big to fall too because of that junk food. You'd be crushed under your own weight, like an elephant.

Fri, 03/09/2012 - 16:40 | Link to Comment geekgrrl
geekgrrl's picture

LOL... it's really a pleasure to see MDB panicking.

Can you say Kaaaabooooommmmm!?

Fri, 03/09/2012 - 17:20 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

many of us are wairing for mrDurden to invite him to be so entertaining at the box at the bottom of the page instead of by "replying"  +/- 100% of the time

tyler may wish to get to it pretty fuking soon (somewhere in tyler-time > another 6 months, too) imh0...

let's see, shall we...? 

Fri, 03/09/2012 - 17:31 | Link to Comment geekgrrl
geekgrrl's picture

Well, initially I thought MDB was just being sarcastic since many people seemed to get that impression. But he never adds the /sarc tag, and responses like this one really don't read like a good sarcastic comment, it reads more like one who just defecated in their pants. I'd be the last person to argue that MDB should add the /sarc tag as a matter of conformity, but as far I can tell, MDB might as easily be a FedBot as human. He(?) certainly has a very limited repertoire. A real one-trick pony.

I'll put it straight up to MDB: are you being sarcastic, or not?

Fri, 03/09/2012 - 18:23 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

he's always doing his little ha-ha's, but i truly object to him jumping every string he decides to "get a laff from his audience" upon

i don't think it's good for the site and the ideas that might be 'happening' if all these articles didn't end up being about what he is doing here with his little furmulaic "couplets"

he's a troll, grrrl!

let's just get rid of the fuking asswipe!

or, he and tyler can ride off into the senset on the same saddle, as far as i'm concerned

personally, i was sick of this a long time ago:   when i first called him out i was sick and tired of his toy-boy trollery here

and that was a while back

i won't accept a steady diet of his string-jumping shit any more

anybody else?

Fri, 03/09/2012 - 21:14 | Link to Comment geekgrrl
geekgrrl's picture

I agree entirely, slewie, especially the part about sidetracking ideas. And of course if the point was to sidetrack the entire discussion, then what better way to help that along than by posting near the top?

It's stuff like this - contstant trollery - that ended my days on peak oil blogs. I estimate on one site, depending on the thread, anything related to energy reserves or production would range from 25% to 75% trolls. (There are beaucoup fracking trolls and shills) But when I looked at threads unrelated to energy, say prepper threads or appropriate technology, there would be 0 trolls. So I've seen this pattern of heavy industry trolling on threads that matter to them and their public relations machine for a long time now.

I'm not surprised to see it here either, and maybe it is a testimonial to the draw of ZH. But, at some point too many trollish posts make me want to throw up and I have to go do something else. That's not necessarily a bad thing... I spend too much of my free time here as it is, mostly reading and trying to learn all this wacky finance jargon.

Still lots of good stuff here but the signal to noise ratio on the comments is getting pretty low. Something tells me that's the plan.

Fri, 03/09/2012 - 22:57 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

well, we fight one day at a time

nothing is ever easy

especially learning about wacky finance and trolls who don't want the truth getting out

tyler will run the club, and we just try to keep up and pay attention

peace, grrl

Fri, 03/09/2012 - 16:53 | Link to Comment unrulian
unrulian's picture

weak

Fri, 03/09/2012 - 17:08 | Link to Comment _ConanTheLibert...
_ConanTheLibertarian_'s picture

Hey MillionDollarFucker, you mean the financial institutions are instrumental to the corrupt global Ponzi economy. Let it fail now! ENOUGH IS ENOUGH!!!

We need local economies and a minimum of government. The sooner the better.

Fri, 03/09/2012 - 17:19 | Link to Comment dontgoforit
dontgoforit's picture

unfortunately - the 'the let them eat cake' thing is what we're gonna get and it's gonna be made with tree bark...hemlock and wormwood

Fri, 03/09/2012 - 17:25 | Link to Comment Bansters-in-my-...
Bansters-in-my- feces's picture

Million DollarBonus,let me start by saying "you" atre a piece of shit.

Secondly I see you have little pea brain payed helpers to hit the green arrows today.

And too big to fail means too big to exist.

Fuck I would love to smack you FuckTard.

Wed, 03/21/2012 - 00:53 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

Instrumental how? Savings money isn't running through there now, small businesses can (should) use credit unions & get no printed Fed bailouts anyhow, so who cares?

Fri, 03/09/2012 - 16:06 | Link to Comment fuu
fuu's picture

Maybe all of those systemically important financial institutions will now DIAF.

Fri, 03/09/2012 - 16:06 | Link to Comment Tsunami Wave
Tsunami Wave's picture

Go fuck yourself MillionDollarRetard

Fri, 03/09/2012 - 16:14 | Link to Comment JailBank
JailBank's picture

From Michael Lewis' "The Big Short"

"How are you going to fuck me?"

Really that is what I want to know with my investments against these people. How is the FED/Treasury/ECB going to fuck me?

Fri, 03/09/2012 - 17:17 | Link to Comment dontgoforit
dontgoforit's picture

in ways you only had nighmares about

Fri, 03/09/2012 - 16:10 | Link to Comment DavidC
DavidC's picture

MDB,
Hilarious! Thanks, some of us get it!

DavidC

Fri, 03/09/2012 - 16:11 | Link to Comment Piranhanoia
Piranhanoia's picture

Settle down Bonus,  calm.  Your still have your paper.  Be happy that you followed what you think was right.  It will all work out for you because you are special.  

Fri, 03/09/2012 - 16:31 | Link to Comment The Continental
The Continental's picture

I'm impressed..by your ability to type these insightful postings and suck your own cock, all at the same time.

Fri, 03/09/2012 - 16:49 | Link to Comment STP
STP's picture

You are absolutely right!  The balance sheets of the world's most important financial institutions has been stuffed like a Thanksgiving turkey with 'Stimulus', POMO, STOMO and any other debt or taxpayer generated fake monopoly money from the Central Banks, both ECB and the Fed.

And pray tell, MDB, what kind of REAL economic activity came from all of this massive money printing?  Did those TBTF banks extend any credit in a huge wave?  No, they're killing time, trying to offset all the CDS's they've bet on, whether it's currencies, bonds or credit.

They're basically insolvent and being kept afloat with a huge IV of money running into their veins.  We're coming up on the true reckoning to see what the value of the collateral is, who the counterparties are and even, who holds what trash they've sold to each other, over and over again in a rehypothecating frenzy of free money, multiplied a thousand, million times until you have $600 Trillion of paper that's worth how much...?

Fri, 03/09/2012 - 17:57 | Link to Comment PMakoi
PMakoi's picture

Precisely right!  It's a 30 year mortgage (downturn) and the Banksters are only going to make the minimum payments due, tout their liquidity and credit worthiness to get all the more that they can, and continue to pay themselves the bonus checks all the while accumulating "rights" to real assets.  We poor sheeple must wait for the collaspe while mesmerized by our entertainment devices until the power goes off.  And when it does, and the bleating frenzy ensues, the same Banking Powers will step forward with their "solution".  And the sheeple will embrace them and thank them.

Because they're sheep.  Game, set, match.

 

Fri, 03/09/2012 - 15:55 | Link to Comment HoofHearted
HoofHearted's picture

Luckily I also have me some FAZ to go with my PMs. If only I didn't have that boating accident with the shiny, I'd have to be a lot happier.

Can we now say, "Told ya so, bitchez" to the rest of the world, or will there be some other deus ex machina to contain this shitstorm?

Fri, 03/09/2012 - 15:55 | Link to Comment narapoiddyslexia
narapoiddyslexia's picture

I predict the banks will have the last laugh, and will continue to do so until the velocity of money drops below the threshhold at which the velocity of lead increases exponentially, up to about 2800 fps.

Fri, 03/09/2012 - 15:59 | Link to Comment redpill
redpill's picture

Well of course they do, if they need to pay off any CDS contracts they can just borrow the money for free from the Fed, and make the American people pay for it through inflation.  Everyone else is fucked.  Whee!

Fri, 03/09/2012 - 16:00 | Link to Comment SMG
SMG's picture

They have been holding this up so long, if true, this doesn't feel real.

Fri, 03/09/2012 - 16:00 | Link to Comment jus_lite_reading
jus_lite_reading's picture

Delicious! I told you guys! ;)

Fri, 03/09/2012 - 16:12 | Link to Comment a growing concern
a growing concern's picture

Nope. Chuck Testa.

Fri, 03/09/2012 - 23:47 | Link to Comment Buck Johnson
Buck Johnson's picture

As the last line said in the article, on paper it says they have 3.2 billion in CDS but Lehman had 7 and change and required a 20 trillion dollar bailout.  The problem is that these are the 3.2 billion is in CDS's they know.  They have no idea how many CDS's where sold in the market for Greece, either naked (meaning they don't own the bond) or ones that own it.  They can truthfully say that it's only 3.2 billion but they know it's more, and maybe they are hoping they can negate the naked owners because they don't own the bonds. 

So imagine I'm hedgefund A and I bought 1 billion dollars in bonds from Greece I bought CDS's for that 1 billion and it's under another nations laws of finance so my CDS's will pay.  But here comes financial institution B that see's my bond and wants to buy insurance for 1 billion in naked CDS's on the bet that Greece will fail on the contractual obligations of the original bond.  Now you have at least 2 billion dollars that is directlly and indirectly tied to Greece.  But now Pension fund xyz gets a CDS on financial institution B and hedgefund A and paying the premiums for 1 billion dollars on each one, thinking that when the CDS pays off on hedgefund it will also pay off on financial institution also .  So you have 4 billion dollars in the play that they are wanting compensated for and they bought insurance for.  Where did the buy the CDS's from, if they bought them all from one place that place just got hit for 4 billion dollars possibly. 

I stopped here because it we could have more co-parties and other financial instruments that are connected, but a simple thing I was able to make a 4 billion dollar hit on someone or a few issuing places, and they have only 3.2 billion in CDS's, please.  I wouldn't be surprised if people didn't start buying CDS's in the hope that Greece would collapse so they could get a good payday.

Fri, 03/09/2012 - 15:50 | Link to Comment GeneMarchbanks
GeneMarchbanks's picture

If this ends up being premature it'll truly reveal what 'markets' are all about. Who said what now?

Fri, 03/09/2012 - 15:51 | Link to Comment sunnydays
sunnydays's picture

Let the fun begin!  Shot of Ouzo for everyone. 

Fri, 03/09/2012 - 15:52 | Link to Comment sunnydays
sunnydays's picture

I needed to add  OOOPPPAAAAAA

Fri, 03/09/2012 - 15:56 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

i'd buy tyler a drink, but all i have with me is this huge bong-load of skunkWeedTM

oh!  hi tyler!

Fri, 03/09/2012 - 16:01 | Link to Comment fuu
fuu's picture

How you doin'?

Fri, 03/09/2012 - 16:35 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

great, thanks, fuu

smoke?  Hahaha!  sticky fingerz todaaaay!

this is a much more orderly bankster fiatsco than lehman, imo

tyler can sell all the soap he wants, i don't care!   the ISDA rules correctly!  why not? 

when i realized why the markets were "frozen" last weekend, why they were screwed down so tight, for so long, i could envision the script, here;  what the isda decided, when, why?  if the CDS are dressed. this is the script!  all actors are ready for the curtain call, at which point the greek pensioners will set the theatre ablaze...

when i began to understand the EU "margin call" to the banks was a bookkeeping m2m entry, this week, after the LTR0 sovereign-bond transfers, last week, i began to understand most of the the "parts" of what i then conceived to be an oderly-market "process" around "sovereign EU-nation debt"

if these markets and assets aren't screwed down tight, i'll be a nunkey's monacle!

we see the EUR and the CHF (swiss cheese, er franc) taking it in the unlubed anal pore today, which is about all the major action i see, right now

which is to be expected since the FED now gets to "unwind" all the liquid fuking dran0 to the EU banksters, now or when it thinks they can handle it, a bit, or when it wants to "consolidate" them...  and somebody else knows this, too...

this is an orderly market, fuu

where "market" = wink, wink

they'll finish getting this flushed and take the tennis racket outa the screw-press when they damned well feel like it, i imagine

the benzelbub was given a lotta power&control over "banking" by dodd-frank, or so the legends go...  since lehman, that would be...

this is a vast improvement in the zombie-real interface, imo

everybody got to play "casino" and only moronic shitheads and lazy no-good-ne'er-do-wells were harmed by these innocent fiatscos of wealth transfer...  L0L 

there is no deus ex and the banks are still shitty as ever, but this deal is done, at least "for the time BEing"

stay tooned...

Fri, 03/09/2012 - 17:30 | Link to Comment fuu
fuu's picture

Brown sugar how come you taste so good?

Fri, 03/09/2012 - 16:08 | Link to Comment Tsunami Wave
Tsunami Wave's picture

Are you cool, man???

Fri, 03/09/2012 - 16:44 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

yes or no, you care?

Fri, 03/09/2012 - 16:18 | Link to Comment candyman
candyman's picture

really no net change with this news, am I turning into a cynic (origin is Greek). From Wiki: Cynicism is an attitude or state of mind characterized by a general distrust of other's apparent motives, or a general lack of faith or hope in the human race. It is a form of jaded negativity, and other times, realistic criticism or skepticism.[1] The term originally derives from an ancient Greek philosophers group called the Cynics who rejected all conventions, whether of religion, manners, housing, dress, or decency, advocating the pursuit of virtue in a simple and unmaterialistic lifestyle.

Fri, 03/09/2012 - 15:48 | Link to Comment navy62802
navy62802's picture

They're just goosing the algos at this point ... testing the waters perhaps.

Fri, 03/09/2012 - 15:56 | Link to Comment bdc63
bdc63's picture

Game on!  Time to find out just how "hedged" these banks really are ...

 

Fri, 03/09/2012 - 15:49 | Link to Comment Marge N. Callz
Marge N. Callz's picture

My net exposure is 0, as long as my counterparties can pay.

Fri, 03/09/2012 - 15:53 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

 

 

The trouble is your counterparties ARE the determination committee.

Fri, 03/09/2012 - 15:55 | Link to Comment Nobody For President
Nobody For President's picture

Got that right:

EMEA

Voting Dealers
Bank of America / Merrill Lynch
Barclays
BNP Paribas
Credit Suisse
Deutsche Bank
Goldman Sachs
JPMorgan Chase Bank, N.A.
Morgan Stanley
Société Générale
UBS

Consultative Dealers
Citibank
The Royal Bank of Scotland

Voting Non-dealers
BlueMountain Capital (Second Term Non-dealer) 
Citadel LLC(First Term Non-dealer)
D.E. Shaw Group (First Term Non-dealer)
Elliott Management Corporation (Third Term Non-dealer)
Pacific Investment Management Co., LLC (Second Term Non-dealer)

Fri, 03/09/2012 - 15:53 | Link to Comment azusgm
azusgm's picture

Popcorn please! while we watch the big "if" play out.

Fri, 03/09/2012 - 15:54 | Link to Comment Cpl Hicks
Cpl Hicks's picture

Show me the moneyyyy!!!!!

Fri, 03/09/2012 - 15:50 | Link to Comment DavidC
DavidC's picture

I'm so totally confused now - is this bullish or bearish for stocks (serious question)?

DavidC

Fri, 03/09/2012 - 15:54 | Link to Comment redpill
redpill's picture

It depends who the counterparties are, and if they can pay.  ISDA called, now everyone has to show their hands and hope the other guy has enough chips.

Fri, 03/09/2012 - 15:57 | Link to Comment GeneMarchbanks
GeneMarchbanks's picture

The part where the music stops and we find the remaining chairs...

Fri, 03/09/2012 - 16:14 | Link to Comment a growing concern
a growing concern's picture

HOLY FUCK IT'S AN ACE ON THE RIVER!!!!!

Fri, 03/09/2012 - 15:51 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

 

 

ISDA, or ISN'TDA credit event?

Fri, 03/09/2012 - 15:51 | Link to Comment JohnnyBriefcase
Fri, 03/09/2012 - 15:52 | Link to Comment junkyardjack
junkyardjack's picture

Sweet, markets going up

Fri, 03/09/2012 - 15:57 | Link to Comment Nobody For President
Nobody For President's picture

Sweet, 3 minutes later markets going down.

 

Fri, 03/09/2012 - 15:52 | Link to Comment ambrosiac
ambrosiac's picture

Habemus Papam!

...o ye of little faith. The boys are all right.

Fri, 03/09/2012 - 15:58 | Link to Comment azusgm
azusgm's picture

Someone please translate Question #7.

Thanks.

Fri, 03/09/2012 - 16:01 | Link to Comment Nobody For President
Nobody For President's picture

Finally, the real deal, and TZA is going up like a rocket starting about 1448..

and I got in at 1446 - damn, can't be wrong all the time.

Fri, 03/09/2012 - 16:15 | Link to Comment a growing concern
a growing concern's picture

Enjoy it while it lasts, cause if you're like me, you're right about once every 10 times in this fucked up "market".

Fri, 03/09/2012 - 15:52 | Link to Comment P229R
P229R's picture

And so it begins....

Fri, 03/09/2012 - 15:53 | Link to Comment Zone1
Fri, 03/09/2012 - 15:54 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

 

 

That is a bingo!!!!!!!!!!

Fri, 03/09/2012 - 15:53 | Link to Comment PicassoInActions
PicassoInActions's picture

euro is not moving? something isnt right

 

Fri, 03/09/2012 - 15:58 | Link to Comment bdc63
bdc63's picture

ahh ... its already priced in ... ? ... I got noth'in ...

Fri, 03/09/2012 - 15:54 | Link to Comment Temporalist
Temporalist's picture

I have created a new job for myself: "Credit Event Planner." I specialize in "Greek style" parties and provide plenty of dinnerware for smashing.

Fri, 03/09/2012 - 15:54 | Link to Comment Jlmadyson
Jlmadyson's picture

Boom!

Next up US debt bomb.

Fri, 03/09/2012 - 15:59 | Link to Comment azusgm
azusgm's picture

German, then Japanese, then US, then Canada.

Fri, 03/09/2012 - 16:56 | Link to Comment unrulian
unrulian's picture

i think you missed a few in there

Fri, 03/09/2012 - 21:48 | Link to Comment azusgm
azusgm's picture

Just the big ones. The little ones will blow up Germany, then the real show begins.

Fri, 03/09/2012 - 15:55 | Link to Comment Schmuck Raker
Schmuck Raker's picture

"Ended up requiring a $20 trillion bailout of capitalism."

That is a ridiculous exaggeration, Tyler. You can hardly call it capitalism.

Fri, 03/09/2012 - 15:59 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

we're all gonna be rich, schmuckster!

rich, i tell ya!!!

Fri, 03/09/2012 - 16:02 | Link to Comment Schmuck Raker
Schmuck Raker's picture

i already iz. i Ben follow Robo advice tree yeers!

Fri, 03/09/2012 - 19:37 | Link to Comment Au_Ag_CuPbCu
Au_Ag_CuPbCu's picture

Try front running his advice...

Fri, 03/09/2012 - 16:01 | Link to Comment sessinpo
sessinpo's picture

No confusion here. Below is a link to PDF files from the ISDA that confirm a credit default has occurred

 

http://www.isda.org/dc/view.asp?issuenum=2012030901

 

15 yes votes, 0 no votes

Bank of America Merrill Lynch

Barclays

Deutche Bank AG

Goldman Sachs

JP Morgan Chase

Morgan Stanley

UBS

BNP Paribas

Societe Generale

Citadel Investment

DE Shaw Group

BlueMountain Capital

Elliott Management

PIMCO

 

Furthermore,

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 ren an expedited auction process such that the auction itself will take place March 19, 2012.

 

Fri, 03/09/2012 - 15:56 | Link to Comment WoodMizer
WoodMizer's picture

The Lehman sequel,

Credit's Greecy Return

I cant wait to see triolgy edition,

Back in the USSA

 

Fri, 03/09/2012 - 15:57 | Link to Comment surf0766
surf0766's picture

So they defaulted, by restructuring with more debt.. to do what re-default again in 90 days?

Fri, 03/09/2012 - 16:00 | Link to Comment Schmuck Raker
Schmuck Raker's picture

It was just an elaborate ploy to dump their gold on zee Germans. Pretty smooth, huh?

Fri, 03/09/2012 - 17:09 | Link to Comment dontgoforit
dontgoforit's picture

it's a re-de-re-default, you know, kind of like a burp, fart then shit in your pants. 

Fri, 03/09/2012 - 15:58 | Link to Comment Eclipse89
Eclipse89's picture

Eyes on A&G (Allianz & Generali), but more on the G.

Fri, 03/09/2012 - 15:58 | Link to Comment jmcadg
jmcadg's picture

Bloomberg - 'This is going to restore credibility in the CDS market' Lol

Fri, 03/09/2012 - 15:59 | Link to Comment SDRII
SDRII's picture

surely this is a surprise to the isda conmmittee members (sarc off). they are "hedged" 

Fri, 03/09/2012 - 15:59 | Link to Comment the not so migh...
the not so mighty maximiza's picture

We need Robos opinion, I wanna feel good.

 

Fri, 03/09/2012 - 16:02 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

robo's at the lululemon outlet store getting a trunkload of new crotchwear for his gfs

he'll be home after a foursome in torreyPines

Fri, 03/09/2012 - 16:04 | Link to Comment Nobody For President
Nobody For President's picture

And where the HELL is MDB, to point out to us "The System Worked" ?

Fri, 03/09/2012 - 16:07 | Link to Comment fuu
fuu's picture

You'll have to figure out his new handle as the old one is MIA again.

http://www.zerohedge.com/users/robottrader

Fri, 03/09/2012 - 17:15 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

L0L!!! 

let's party! Robo-T'sTheme

Fri, 03/09/2012 - 18:07 | Link to Comment fuu
fuu's picture

That's some talented song writing right there.

Fri, 03/09/2012 - 16:03 | Link to Comment Moneyswirth
Moneyswirth's picture

Wheeee!  Ouzo for everyone!! 

Fri, 03/09/2012 - 16:05 | Link to Comment Moneyswirth
Moneyswirth's picture

We all need to hedge ourselves before Monday's open.  Sell all your PMs---load up on great American businesses like AAPL, ZNGA and NFLX....then later in the spring, back up the truck for FCBK!!

 

Fri, 03/09/2012 - 16:06 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

There has been too much time for TPTB to track down all the swaps and ensure they have them ring fenced.

This is unlikely to be a collapse inducing event.  Governments can do anything to stop collapse.  It's when they have no time to do anything because it is a surprise that the collapse arrives.

Or when there is nothing they can physically do (not legally, legal doesn't matter) that we can see collapse.

This ain't either.

Fri, 03/09/2012 - 16:07 | Link to Comment The Swedish Chef
The Swedish Chef's picture

So around $10,000,000,000,000 coming out of our pockets then? By the way, that date, March 19:th, coincides beatifully with the wispering about a Greek default the following weekend. 

 

 

Fri, 03/09/2012 - 16:10 | Link to Comment eddiebe
eddiebe's picture

Regardless wether they declare 'and event' has occured or not, the haircut or write down or bond re issue whatever you want to call it is the h bomb of this whole greek /eu thing. Now it is really becoming clear that debt to the degree that it has been run up by sovereigns is all suspect. All sovereign bonds, all supposedly insured and backstopped derivatives are now suspect. If you notice gold is rising same time as the dollar, while the bond is showing red. So even though people are rushing into the dollar, it's not unilaterally all U.S.. 

 There has been a paradigm shift. Of course there will be the ususal manipulation, but as we all know, that can only go so far, especially when it has to happen on all fronts. 

Fri, 03/09/2012 - 16:15 | Link to Comment Fastback
Fastback's picture

So the EU LIARS are once again proven to be just that : LIARS. Wake up people we are governed by LIARS!

Fri, 03/09/2012 - 16:19 | Link to Comment Nobody For President
Nobody For President's picture

To me, the most interesting part of this whole deal is to finally (maybe) really see how deep this damn rabbit hole goes. The notational $3 billion, these days, is *relatively* trivial, and there has been plenty of time to hedge for the big players. But the whole basic idea of CDS, that you don't have to own the security you are buying 'insurance' on to buy it, is so damn fundamentaly flawed as to boggle the mind of this old-timer, fundamental investor. This truly, truly makes Vegas look rational. And there is NO 'clearing house' to really know where the counterparty risk is or how big it is. Crazy ain't even close.

 

I think Tyler's $20 trillion is a bear wet dream, but he is a fuck of a lot more knowlegeable than I.

It sure as hell is more than $3 billion. Probably a lot more. So called 'smart money' has had since (say) spring of 2010 to start buying up CDSd betting on Greek default, and it must have accelerated fiercely last year. With the CDS 'market' totally fucking opaque, I doubt anybody has more than a guess at where all the counter-parties are buried.  I'm watching my medium list of big financials for a clue - FAS is still up, UBS, HBC are doing poorly, and the squid and Bac just went underwater - we will see.

(Whispering:) Counterpary, counterparty, where art thou? Come out, come out, wherever you are...

As a movie (or TV soap), I think we just went from farce to horror. 

Fri, 03/09/2012 - 16:20 | Link to Comment tooktheredpill
tooktheredpill's picture

dude, slight difference between 08 and now. Of course what is coming is probably worse, but still apples and oranges.

Fri, 03/09/2012 - 16:20 | Link to Comment PicassoInActions
PicassoInActions's picture

Lehman had $7.2 billion at that time 

we talked about millions and billion was an alien word, today we are talking about trillions and billion is a spare cash for McDonalds.

Fri, 03/09/2012 - 16:22 | Link to Comment web bot
web bot's picture

Clif High of Web bot says that at 8:00 pm West cost time this evening, a major event begins where "release language" starts to dissipate and never comes back... This may be the event...

(I'm not associated with the web bot people).

Fri, 03/09/2012 - 16:23 | Link to Comment Major Priapus
Major Priapus's picture

Cry "Havoc!" and let slip the dogs of war, That this foul deed shall smell above the earth. With carrion men, groaning for burial.

Fri, 03/09/2012 - 16:37 | Link to Comment Nobody For President
Nobody For President's picture

Not to worry, USD just broke 80...

Fri, 03/09/2012 - 17:00 | Link to Comment unrulian
unrulian's picture

fuck you clingon scum your about to eat a photon sandwich

Fri, 03/09/2012 - 16:38 | Link to Comment jmcadg
jmcadg's picture

MDB, if only this was sarcasm, sadly I think you're problem a tosser. Still give Robo a call and he can pick up some incontinence knickers for you whilst he's getting his.

Fri, 03/09/2012 - 16:42 | Link to Comment jmcadg
jmcadg's picture

Pim Fox - Aren't we going to be the engine for the rest of the world?

Then his guest starts to say the growth is not there (needle scratching across a record)

... "Where going straight to a break"

What a fuckin TWWWWWWWWWWAAAAAAAAAAAAATTTTTTTTTTTTTTT

Fri, 03/09/2012 - 16:44 | Link to Comment jmcadg
jmcadg's picture

Million Dollar Bonus?

Fri, 03/09/2012 - 16:45 | Link to Comment jmcadg
jmcadg's picture

Still on a break, come on Pim squeeze harder, you feeble fuck.

Fri, 03/09/2012 - 16:46 | Link to Comment Fix It Again Timmy
Fix It Again Timmy's picture

It's time for "Dancing With The Defaults"; on the floor now we have.......

Fri, 03/09/2012 - 16:46 | Link to Comment johnjkiii
johnjkiii's picture

Let the lawsuits begin. We will now see how well CDSs work in reducing risk on Sovereign debt. Any bets one which way this goes?

Fri, 03/09/2012 - 16:50 | Link to Comment vote_libertaria...
vote_libertarian_party's picture

$3B net?   That can't be.

 

Haven't CDS gone from $150T to $600T in the past 3 years?

 

And Greek bonds were probably to most mis priced.  In 18 months ago the Greek 10 year yield was 6%.

 

There is going to be some big hedge managers exposed for having more money than brains.

 

Then get ready for the most used quote for the spring..."Who could have seen this coming?"

Fri, 03/09/2012 - 16:51 | Link to Comment azzhatter
azzhatter's picture

Success!! Winning!!

Fri, 03/09/2012 - 17:06 | Link to Comment unrulian
unrulian's picture

apparently, there it is a clause in the CDS contract that states it is only valid when the planets align, during a solar storm, and a full moon...

 

.....................wait a f'n second.....

Fri, 03/09/2012 - 18:24 | Link to Comment Tyranny is Love
Tyranny is Love's picture

What are the fcuking odds on that?!!

 

Seriously does anyone have a clue what the odds are on having all four discrete events happen at the same time?... the planets align, during a solar storm, and a full moon, in time for a Greek default (triggered Credit event).

Any actuaries or closet statisticians? Got to be huge coincidence.

Fri, 03/09/2012 - 20:05 | Link to Comment icanhasbailout
icanhasbailout's picture

Napoleon won at Waterloo, sell everything!

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