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 | 2240759 redpill
redpill's picture

Credit event, bitchez

Fri, 03/09/2012 - 15:51 | 2240776 taniquetil
taniquetil's picture

Holding physical bullion has rarely felt so satisfying.

Fri, 03/09/2012 - 15:53 | 2240799 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 | 2240804 Comay Mierda
Fri, 03/09/2012 - 16:04 | 2240899 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 | 2240914 economessed
economessed's picture

The truth hurts.

Fri, 03/09/2012 - 16:11 | 2240961 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 | 2240976 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 | 2241175 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 | 2241206 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 | 2241436 French Frog
French Frog's picture

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

Fri, 03/09/2012 - 18:10 | 2241571 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 | 2242295 blunderdog
blunderdog's picture

A troll.

Sat, 03/10/2012 - 18:08 | 2243738 Elliott Eldrich
Elliott Eldrich's picture

Stephen Cobert?

Fri, 03/09/2012 - 16:17 | 2241013 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 | 2241196 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 | 2241238 _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 | 2241161 geekgrrl
geekgrrl's picture

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

Can you say Kaaaabooooommmmm!?

Fri, 03/09/2012 - 17:20 | 2241251 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 | 2241434 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 | 2241598 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 | 2242045 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 | 2242294 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 | 2241236 unrulian
unrulian's picture

weak

Fri, 03/09/2012 - 17:08 | 2241305 _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 | 2241352 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 | 2241396 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 | 2275860 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 | 2240921 fuu
fuu's picture

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

Fri, 03/09/2012 - 16:06 | 2240929 Tsunami Wave
Tsunami Wave's picture

Go fuck yourself MillionDollarRetard

Fri, 03/09/2012 - 16:14 | 2240990 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 | 2241345 dontgoforit
dontgoforit's picture

in ways you only had nighmares about

Fri, 03/09/2012 - 16:10 | 2240958 DavidC
DavidC's picture

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

DavidC

Fri, 03/09/2012 - 16:11 | 2240963 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 | 2241091 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 | 2241212 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 | 2241534 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 | 2240809 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 | 2240813 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 | 2240850 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 | 2240867 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 | 2240872 jus_lite_reading
jus_lite_reading's picture

Delicious! I told you guys! ;)

Fri, 03/09/2012 - 16:12 | 2240975 a growing concern
a growing concern's picture

Nope. Chuck Testa.

Fri, 03/09/2012 - 23:47 | 2242402 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 | 2240762 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 | 2240782 sunnydays
sunnydays's picture

Let the fun begin!  Shot of Ouzo for everyone. 

Fri, 03/09/2012 - 15:52 | 2240785 sunnydays
sunnydays's picture

I needed to add  OOOPPPAAAAAA

Fri, 03/09/2012 - 15:56 | 2240819 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 | 2240879 fuu
fuu's picture

How you doin'?

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