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ISDA's Take On Lack Of Greek CDS Trigger: "We Think The Credit Event/DC Process Is Fair, Transparent And Well-Tested"

Tyler Durden's picture


Everyone's favorite banker-controlled CDS determining organization took offense to media reports saying it may be secretive, corrupt, and borderline manipulate if not worse. To wit: "In sum, we think the credit event/DC process is fair, transparent and well-tested.  There’s simply no evidence to the contrary.  Perhaps after today this non-secret secret will be a secret no more."

ISDA's petulant take in its entirety as follows:

Today we were treated to two news stories in two newspapers on one topic:  the process for determining whether a credit event has occurred with respect to Greek sovereign CDS.


On the one hand, there’s The Washington Post:  “For Greece, a critical conference call between London and New York.”  (A follow-up story is here.) On the other hand, there’s The Wall Street Journal’s “Hushed Up: Secret Panel Holds Fate of Greek CDS.”


An important part of the credit event process – and an important element in each story – are the ISDA Determinations Committees (DCs).  The DCs are 15-member panels of representatives from banks and investment firms.  A supermajority (12 of 15) of each DC’s members is required to make a determination.  Here’s how the Post describes the process and the DCs:


“The banks and other investors who buy and sell the swap contracts have agreed to the arrangement as a way to centralize what had been an ad hoc, company-to-company process of deciding whether a credit default swap payment was warranted.


“The committees are set up with competing interests in mind. The group meeting in London and New York on Thursday includes representatives of major European institutions like Deutsche Bank, as well as private investment funds like Blue Mountain Capital, that might have different points of view.


“A supermajority of 12 committee members is needed to make a determination either way, and if the panel deadlocks the issue would be sent to a new group of three outside arbiters. Some 59 cases have gone before ISDA committees so far without follow-up litigation, and only one has been referred to an outside panel.”


Contrast this with the Journal’s take.  First, there’s the headline about a “Secret Panel.”  The DCs are said to be “secretive” and “rarely elaborate on decisions.” “No outsiders can participate in the meeting…No transcript will be made public. When a decision is announced, expected before Monday, the committee doesn’t have to provide an explanation. There is no opportunity for investors to appeal.”  Critics “question the impartiality of the process.”


It’s a bit of a mystery why the story characterizes the process as so “secretive.”  The names of the firms on the DC are public, as are their votes.  The process by which the DC members are selected, and the rules governing the DCs, are also public.  Their decisions are publicly announced.  At times, public explanations for those decisions are provided, but often this does not appear to be necessary (such as when the vote is 15-0).


In addition, the process, as the Washington Post article notes, was built to address conflicts of interest.  The credit event/DC process has worked extremely well for 3+ years.  It has handled dozens of credit events without incurring a single legal challenge.  If a supermajority isn’t reached, the decision goes to a panel of outside experts.  A supermajority has not been reached only twice in all the times the DCs have agreed to consider a question.

Well, that takes care of that. ISDA is now certainly "fair, transparent, and well-tested", and for those who wrongfully feel that a 70%+ bond haircut could possible be an event of default, tough.

Anyone else who wishes to express their feelings on the matter, can respond on ISDA's blog site.


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Thu, 03/01/2012 - 17:29 | 2214606 Ahmeexnal
Ahmeexnal's picture

--the lynch mob

Thu, 03/01/2012 - 17:31 | 2214624 battle axe
battle axe's picture

ISDA IS FAIR  AND TRANSPARENT. BWHAAAAAA HAAAAAAA HAAAAAAAA. Those weasels are bought and paid for and are becoming a bigger joke then they  were already considered by all the trading desks....

Thu, 03/01/2012 - 17:36 | 2214646 bdc63
bdc63's picture

They had to have been laughing their asses off when they wrote that statement.


Thu, 03/01/2012 - 18:14 | 2214792 strannick
strannick's picture

Substitute 'CFTC Commisioners' for ISDA, and 'unbacked COMEX paper shorts' for CDS trigger. At least ISDA doesnt trot out Bart Chilton every month wringing his hands saying they are trying their best.

Eventually enough idiots will have been abused enough to abandon trading both.

Thu, 03/01/2012 - 18:27 | 2214854 Clint Liquor
Clint Liquor's picture

Bart Chilton needs a haircut and someone to hang a pair of balls on him.

Fri, 03/02/2012 - 02:31 | 2216020 SAT 800
SAT 800's picture

It's pathetic and transparent. It won't be long now, and everyone will know how "fair, Transparent, and Realistic" this process is.

Fri, 03/02/2012 - 02:31 | 2216021 SAT 800
SAT 800's picture

Yes, it's completely absurd. Propaganda; period.

Thu, 03/01/2012 - 18:16 | 2214810 Nascent_Variable
Nascent_Variable's picture

Of course, they're fair and transparent.  And, I'm sure the balance sheets of all those French banks that just took a bath will be adjusted properly with the non-credit event default..

Thu, 03/01/2012 - 21:21 | 2215348 Buck Johnson
Buck Johnson's picture

Another joke from the Western banking system.

Thu, 03/01/2012 - 17:36 | 2214650 SilverRhino
SilverRhino's picture

We think fucking over counterparties is fair, transparant and well tested.

Essentially they just told a bunch of rich people to go fuck themselves.     Wonder how long until the hit men are working on these miserable fucks?

Thu, 03/01/2012 - 17:37 | 2214657 maxmad
maxmad's picture

Like Ben F. said "their world is collapsing around them!"  Make the lies as big as you want them, you're time is running out!

Thu, 03/01/2012 - 17:53 | 2214735 FlyoverCountryS...
FlyoverCountrySchmuck's picture

"Make the lies as big as you want them, you're time is running out!"

As long as it lasts past U.S. Election Day 2012. That's ALL that matters. Can you just IMAGINE the daily media outrage we'd be treated were a REPUBLICAN President right now?

Thu, 03/01/2012 - 18:38 | 2214679 Widowmaker
Widowmaker's picture




Thu, 03/01/2012 - 17:43 | 2214685 tmosley
tmosley's picture

I prefer to hang them from the neck until dead, but that is just me.

Thu, 03/01/2012 - 17:50 | 2214726 MillionDollarBonus_
MillionDollarBonus_'s picture

OMG. Libertarians got absolutely owned by the ISDA!! LOL. My favorite part in response to the Wall Street Journal's typical right wing conspiratorial take:

"It’s a bit of a mystery why the story characterizes the process as so “secretive.”  The names of the firms on the DC are public, as are their votes.  The process by which the DC members are selected, and the rules governing the DCs, are also public.  Their decisions are publicly announced."


Thu, 03/01/2012 - 17:57 | 2214752 curbyourrisk
curbyourrisk's picture

You must be related to Harry Wagner

Thu, 03/01/2012 - 18:40 | 2214895 alien-IQ
alien-IQ's picture

You seem to be suffering from the delusional belief that if you behave sufficiently sycophantic towards the bankster oligarchy you will somehow be spared the ass fucking that is coming.

Not only does it make you look stupid, but it has the added advantage of exposing you as a cowardly pussy.


Thu, 03/01/2012 - 22:00 | 2215426 mendigo
mendigo's picture

you make a really good point - I for one value your insight.
Still the opening corrupt nature of it is a bit upsetting.
Do banks voluntarily forgive 70% of debt in your experience asshole.

Thu, 03/01/2012 - 18:07 | 2214780 johngaltfla
johngaltfla's picture

That should pretty much kill any faith at all in the credit markets.

Does this mean all the "old" GM bondholders who had CDS have to give their money back too?

F'in bastards.

Thu, 03/01/2012 - 17:28 | 2214607 Gene Parmesan
Gene Parmesan's picture

Is there a line at all if 70% isn't enough? 99%? Fractions of a percent?

Thu, 03/01/2012 - 17:28 | 2214608 john39
john39's picture

"trust us, we're bankers".

Thu, 03/01/2012 - 20:14 | 2215170 sgt_doom
sgt_doom's picture

Ya know, I was just reflecting on how much money Nicholas Brady and C. Fred Bergsten must have made ("earned" claim the cretins!!!) as counterparties to Lehmans and Bear Stearns through their shop, Darby Overseas Investments, when I recalled this about old C. Fred Bergsten, one of the co-founders of the Peterson Institute (whose agenda is to offshore ALL American jobs, end or privatized [steal] Social Security, Medicare and Medicaid, and worship the WTO Financial Services Agreement):

In 2007 C. Fred Bergsten resuscitated the idea of a Substitution Account through which SDRs might be substituted for dollar reserves as a way of allowing central banks to diversify out of dollars without precipitating a dollar crash, which might undermine confidence in U.S. financial markets.

Yup, one can always trust those banksters!

Thu, 03/01/2012 - 17:29 | 2214610 Gubbmint Cheese
Gubbmint Cheese's picture

another well tested process is throwing criminals in jail...

just thought I'd throw that one out there..

Thu, 03/01/2012 - 17:50 | 2214724 cossack55
cossack55's picture

Sorry, Cheese, that level of leniency is LONG gone.

Thu, 03/01/2012 - 17:29 | 2214611 101 years and c...
101 years and counting's picture

Excellent.  I will only pay 30% of my mortgage going forward, since all contract law is no longer valid and the borrowers can determine what they feel like paying back.  I hope all others will do the same.


Thu, 03/01/2012 - 17:39 | 2214667 LawsofPhysics
LawsofPhysics's picture

You might as well drop ALL insurance coverage while you are at it.  Apparently "moral hazard" is a make-believe word made up by "bad" people who wanted to scare children.

Thu, 03/01/2012 - 17:43 | 2214680 JPM Hater001
JPM Hater001's picture

I'm right behind you...but you still go first.

Thu, 03/01/2012 - 17:29 | 2214614 Conrad Murray
Conrad Murray's picture

For the old fashioned types, give them a call -

For a Determinations Committee contact, please email

Thu, 03/01/2012 - 17:31 | 2214620 bdc63
bdc63's picture


Thu, 03/01/2012 - 17:31 | 2214623 blu
blu's picture

How dare we question them! Why the nerve of some people.

Thu, 03/01/2012 - 17:31 | 2214625 Comay Mierda
Comay Mierda's picture

the lawyers are salivating over this ruling

Thu, 03/01/2012 - 17:31 | 2214627 LongSoupLine
LongSoupLine's picture

plain and simple corrupted horseshit.

The end.

Thu, 03/01/2012 - 17:44 | 2214689 JPM Hater001
JPM Hater001's picture

Sadly no one buying the CDS bothered to see who would rule on the judgement.

Caveat Emptor bitchez.

Thu, 03/01/2012 - 17:32 | 2214628 eBuddha
eBuddha's picture

what do they think have Luke Skywalker's Force:  MOVE ALONG.....

Thu, 03/01/2012 - 17:32 | 2214629 czarangelus
czarangelus's picture

This slapstick would be the best show on television if it weren't so damned expensive. :-/

Thu, 03/01/2012 - 17:33 | 2214637 mayhem_korner
mayhem_korner's picture

Fair, Transparent and Well-Tested


That's what's printed on the side of a Trojan-brand box, no?

Thu, 03/01/2012 - 19:42 | 2215077 JPM Hater001
JPM Hater001's picture

Yes, and I have always wondered who the chap is that keeps a hard-on all day to test every condom...Thats some serious staying power.

Thu, 03/01/2012 - 17:36 | 2214649 LawsofPhysics
LawsofPhysics's picture

...and gravity will be outlawed shortly.  All is well.   Rrriiiigggghhht.

Thu, 03/01/2012 - 18:48 | 2214921 resurger
resurger's picture


I think Isaac Newtons law is a hoax!

For every action, there is .... reaction

who the fuck needs math anyway.

Fuck Math & Physics

Thu, 03/01/2012 - 17:36 | 2214652 magpie
magpie's picture

Only 3.5 Billion $ were stolen uh lost during this non-credit event.

Thu, 03/01/2012 - 17:46 | 2214695 americanspirit
americanspirit's picture

It vaporized. Just like that - poof - it was gone. It was amazing.

Thu, 03/01/2012 - 19:43 | 2215079 JPM Hater001
JPM Hater001's picture

I was just alerted this vaporization was only transitory.

Thu, 03/01/2012 - 17:38 | 2214663 surf0766
surf0766's picture

I am Baghdad Bob.  You are Baghdad Bob. We all are Baghdad Bob.

Thu, 03/01/2012 - 17:52 | 2214664 Mercury
Mercury's picture

Not a bad credit event auction primer if anyone needs a walk-through:

You know, just in case an actual credit event is ever again allowed to happen...

Thu, 03/01/2012 - 17:39 | 2214670 alien-IQ
alien-IQ's picture

"In sum, we think the credit event/DC process is fair, transparent and well-tested.  There’s simply no evidence to the contrary.  Perhaps after today this non-secret secret will be a secret no more."


This sounds like they are daring ZH to prove them wrong. (although it could be argued that such has already been accomplished).


Perhaps it's time to take these fuckers to the woodshed in a very humiliating manner?

Thu, 03/01/2012 - 18:12 | 2214800 Conrad Murray
Conrad Murray's picture

I wonder how much information could be found on the following people via Facebook, LinkedIn, Spokeo, Property records, tax records, etc.

Thu, 03/01/2012 - 17:40 | 2214673 Mysteerious Roo...
Mysteerious Rooshian Vooman's picture

I am here.

Thu, 03/01/2012 - 17:43 | 2214681 Dead Canary
Dead Canary's picture

Come on guys, the system is well tested and works perfectly. Have any bankers gone to jail yet? No. See, it works just fine.

Thu, 03/01/2012 - 17:44 | 2214686 LULZBank
LULZBank's picture

More worrying thing is when this kind of attitude seeps into everyday life and among "common" people. e.g.  Bosses telling dumb lies to their subordinates and expecting them to believe them. Anyone who questions is chastised immediately as unfriendly and a non-team player. WTF?!

Thu, 03/01/2012 - 17:47 | 2214706 Amish Hacker
Amish Hacker's picture

I hope lots of ZH-ers will make use of the link above to express their opinions directly to the ISDA.

How would you feel if your house burned down, and the insurance adjuster claimed that, since the chimney was still standing, there couldn't possibly have been a fire?

Thu, 03/01/2012 - 17:49 | 2214721 Kaiser Sousa
Kaiser Sousa's picture

I keep telling yall....until we start killing these socipaths they will continue to fuck the people of the world and dare u to do anything about it...
Fuck a mother fuckin bitch ass banker...yeah, I said it and Wii keep saying it.....

Thu, 03/01/2012 - 17:52 | 2214729 Clint Liquor
Clint Liquor's picture

There is only one financial instrument without counter-party risk, Precious Metals. With everything else, including currency,  there is counter-party risk. Don't play their game.

Thu, 03/01/2012 - 17:53 | 2214738 AbruptlyKawaii
AbruptlyKawaii's picture

fasb 157

Thu, 03/01/2012 - 17:54 | 2214740 AC_Doctor
AC_Doctor's picture

This scum will swing with the rest of the scab banksters.

Thu, 03/01/2012 - 17:55 | 2214742 dark pools of soros
dark pools of soros's picture

..these are not the defaults you are looking for...

Thu, 03/01/2012 - 21:07 | 2215296 unrulian
unrulian's picture

...These are not the defaults we are looking for...move along

Thu, 03/01/2012 - 17:57 | 2214748 east paris trader
east paris trader's picture

What % of revenue did the banks just reveal came from CDS writing?  Talk about shitting in your own well ....

Thu, 03/01/2012 - 17:58 | 2214758 Let The Wurlitz...
Let The Wurlitzer Play's picture

Anyone that is holding Eurpean debt is playing with fire, while juggling knives, while walking under a latter, in front of a black cat, on Friday the 13th - well you get the picture.

Lets just say I am glad I do not own any European debt.


Thu, 03/01/2012 - 21:08 | 2215301 unrulian
unrulian's picture

i bet your bank does

Thu, 03/01/2012 - 17:59 | 2214761 slewie the pi-rat
slewie the pi-rat's picture

where do they publish who voted, which way they voted, and what the totals were?

again, this can change as the "politics of the voting EVOLVES" [L0L!!!   i hate that fuking word, BiCheZ!!!]

Thu, 03/01/2012 - 18:02 | 2214769 SillySalesmanQu...
SillySalesmanQuestion's picture

They probally won't post my comment to them...  ;)

Thu, 03/01/2012 - 18:05 | 2214775 TahoeBilly2012
TahoeBilly2012's picture

One day these boys will learn what "fair" really is.

Thu, 03/01/2012 - 18:06 | 2214776 Quinvarius
Quinvarius's picture

Sovereign bond dump in 3...2...1...  If you can't buy insurance on the garbage, you can't buy the garbage.  CDS buyers got MF Globaled.

Thu, 03/01/2012 - 18:11 | 2214795 tony bonn
tony bonn's picture

isda is impersonating bernie madoff on behalf of the criminal issuer of the cds....

Thu, 03/01/2012 - 18:14 | 2214804 ebworthen
ebworthen's picture

Hal 9000:  "I see nothing wrong with self-preservation, do you Dave?"

Dave:  "Open the pod bay doors Hal!"

Hal 9000:  "I'm sorry Dave, I can't do that."

Thu, 03/01/2012 - 18:14 | 2214806 Westcoastliberal
Westcoastliberal's picture

The ISDA is "fair and transparent" just as Faux News is "fair and balanced".

Thu, 03/01/2012 - 18:38 | 2214808 bobola
bobola's picture

If they are comfortable that the credit situation in Greece is just fine, then they should load up on 1 year Greek bonds, which hit a yield high of 978% earlier today.

Nope, nothing wrong there.

Business as usual.

Nothing to see there...move on.........

Edit; look up the guys who run the ISDA - all ex bankers.  Like they are going to declare a credit event that will cause billions to flow from their ex-employers. 

Nothing to see here...move on...

Thu, 03/01/2012 - 18:17 | 2214816 tpbeta2
tpbeta2's picture

What's the problem. If the CDS holders accept it, it's voluntary. If they don't, then they will probably get their CDS paid out.

Thu, 03/01/2012 - 18:22 | 2214831 LookingWithAmazement
LookingWithAmazement's picture

Surprise, surprise: Greek haircut/default not a credit event.

DERIVATIVES: ISDA rules against Greek credit event

Told. You. So. Greek default = non-event. Not even a tiny collapse. Boring world we live in.

Thu, 03/01/2012 - 18:33 | 2214836 resurger
resurger's picture

Jon Corzine: but i thought i hedged myself against the hair cut in the greek bonds by buying those CDS's!!

ISDA:Fuck .... you will make us go bankrupt Jon!

Jon Corzine: hmmm. i have an idea, how about you dont declare it a credit event?

ISDA: you mean we say that our CDS's are duds.

Jon Corzine: No, you dont declare a credit event and i dont exercise those nukes, lets do the catch 22 and get the real thing gold and silver from those fucking goys!

ISDA: What a true fucking kyke you are!!!

Jon: ^ ^

ISDA: whats the cut?

Jon: 50/50

ISDA: 50/50 done

Jon: am a call Jammie (Stupid mother fuckers)



P.S: that was the American Version, now watch the European version on 100 tonnes of Gold


Thu, 03/01/2012 - 18:25 | 2214845 giovanni_f
giovanni_f's picture

Jim Sinclair was right, I suppose.

Thu, 03/01/2012 - 18:27 | 2214853 keeping appearances
keeping appearances's picture

I guess PIIGS really do fly!


Thu, 03/01/2012 - 18:28 | 2214857 ejhickey
ejhickey's picture

Everybody knows that the dice are loaded  
Everybody rolls with their fingers crossed  
Everybody knows that the war is over  
Everybody knows the good guys lost  
Everybody knows the fight was fixed  
The poor stay poor, the rich get rich  
That's how it goes  
Everybody knows  
Leonard Cohen

Thu, 03/01/2012 - 18:33 | 2214873 Hedge Fund of One
Hedge Fund of One's picture

My comment is awaiting moderation, maybe along with thousands of others. :-)


Thu, 03/01/2012 - 18:57 | 2214949 Lost Wages
Lost Wages's picture

Me too. I high-ly recommend writing them while inebriated.

Thu, 03/01/2012 - 18:43 | 2214908 phenry2
phenry2's picture

CSD's have priced in a 95% chance of default.  So unless they lose 95% of value there is no default.  - Trigonometry Timmy G.

Thu, 03/01/2012 - 18:57 | 2214950 Winston Churchill
Winston Churchill's picture

Give the Bondholders the weekend to think about it.

They are obviously not that bright ,else how did they buy them

in the first place Cthe bonds that is).

Expect a reaction on Monday.

I predict panic.


Thu, 03/01/2012 - 19:02 | 2214965 chunkylover42
chunkylover42's picture

well of course the ISDA is transparent, just ask them.

Thu, 03/01/2012 - 19:19 | 2215006 alfred b.
alfred b.'s picture


....fair, transparent and well-tested??


Just who the hell do they think they are...the fed?

Thu, 03/01/2012 - 19:25 | 2215017 Catullus
Catullus's picture

Group think a little?

There is a logical fallacy inherent in all this.  That they've unanimously agreed on something does not mean that it's fair or balanced.  This is a great example of Begging the Question. 

Hey guys, answer the basic question: if you take a haircut on a bond, is it a default event or not? If not, we all know where we stand.  That the BONDHOLDERS agreed to take the swap has nothing to do with the CREDIT DEFAULT SWAP holders. Yes, there are people that own the CDS contracts that don't own the bonds.  Despite what the insano left thinks, this is not unscrupulous at all.  Someone could be hedging municipal bond debt and using the sovereign CDS as a proxy hedge. 


Thu, 03/01/2012 - 20:24 | 2215191 SaveTheBales
SaveTheBales's picture

For all the tea in China, I do NOT see what all the hubbub is about.  Anyone that can sell a CDS after the "50% haircuts are not a default" thing should report to OUR marketing department immediately -- we sell software. You can obviously sell sea water to the Titanic.  We need to talk.

On another note, anyone wanna buy a CDS?  Get 'em while they're hot, Hot, HOT.  Evidently, there are no rules, so just bring me Goldman's quote, and I'll be happy to shave $10mm.  I could use the $380mm fee.  (What're most of us worth -- half that?)  No, no.  We won't lock you into any stuffy Contracts.  They're more like Guidelines.

Honestly, what kind of schmuck would assume that unreserved insurance would ever pay out, since reserved insurance doesn't pay out?  Anyone who buys this trash deserves every penny of his loss.  Anyone who invests with the delusion that "my guys are covered" is a walking Darwin Award. 


Thu, 03/01/2012 - 21:28 | 2215327 Centurion9.41
Centurion9.41's picture

When revolutions occur, history has shown it's not just the king and his court who are taken out and beheaded.    All the bureaucrats, wealthy allies, and political supporters join them on the jubilee celebration stage.

Save of course fine folks like Warren Buffett and Charlie Munger.  Those brave souls who supported the rape of taxpayers via TARP, etc., for the good of the people.  To save the fine citizens and country from the impact of a financial crisis.   Warren and Charlie didnt support those measures to save the banks or keep Berkshire Hathaway from blowing out.  

Noooo.   Noooo.   Wasn't needed.  Berkshire was hedged and protected with ISDA approved CDS's!

I think many people are coming to more fully understand the French Revolution and why during all revolutions the government workers/bureaucrats are treated just like the kings and political leaders.

I used to not understand how the mob could be so cruel.

Now, I would have a hard time voting "guilty" for anyone in the mob that stormed the Bastille.....

Thu, 03/01/2012 - 21:36 | 2215386 Centurion9.41
Centurion9.41's picture

On a practical note, this makes the real default calculations and exposure much much simpler.

And I'm sure the real smart money long ago did the napkin calculations on the new game post rule changes.

Oh, and by the way.  The CB's now are looking at numbers in the reasonable trillions range....completely within the digital capabilities of the Ctrl+P & Ctrl-P money game.

Thu, 03/01/2012 - 21:38 | 2215390 q99x2
q99x2's picture

A credit event is subject to interpretation. What is is still is in an upside down world. Ramifications of such an event shall transpire. The decision will determine whether the fallout shall be healthy or destructive.

How the hell do you join one of these mafia organizatinos. What do you have to do graduate from Harvard?

Thu, 03/01/2012 - 22:12 | 2215453 zippy_uk
zippy_uk's picture

As a bill paying member of the committee that decides whether we are to pay the bill we unanimously decided after careful consideration of all the facts that there is no bill to be paid.

As a bill paying member of the committee I feel we came to exactly the right decision based on the facts before us

Thu, 03/01/2012 - 23:19 | 2215672 weyes1
weyes1's picture

Its a beautiful thing, the destruction of words.

Default. Democracy. Inflation. Unemployed.


You get the idea.

Thu, 03/01/2012 - 23:27 | 2215698 rsnoble
rsnoble's picture

"Fair" and "transparent" from the people that run the ISDA...........JPM and GS. Give me a fucking break!

Thu, 03/01/2012 - 23:44 | 2215713 Coldfire
Coldfire's picture

"In sum, we think the credit event/DC process is fair, transparent and well-tested.  There’s simply no evidence to the contrary.  Perhaps after today this non-secret secret will be a secret no more."

They would say that, but the "ruling" that the Greek default is not a credit event is absurd on its face. There may be a silver lining, though. The fraud-on-crack known as ISDA could well blow itself up by finally killing confidence in the global OTC derivative Ponzi scheme. Keep a good thought.

Fri, 03/02/2012 - 00:35 | 2215848 David Wooten
David Wooten's picture

From this point on, any lender who 'insures' his loans via CDS's is fool who deserves to be separated from his money.

Fri, 03/02/2012 - 01:01 | 2215882 Bansters-in-my-...
Bansters-in-my- feces's picture

Fuck you's bankers.

Fri, 03/02/2012 - 01:28 | 2215918 cnhedge
cnhedge's picture
ISDA is waiting for cac to activate cds.
Fri, 03/02/2012 - 07:46 | 2216285 fiddy pence haf...
fiddy pence haff pound's picture

Timmie: My plans are progressing perfectly. Next we will chop and cauterise Greece from the Euro and feed them to the Turks. Where's my cat? I like to stroke my cat while making my evil pronouncements.

Fri, 03/02/2012 - 17:23 | 2218195 Lost Wages
Lost Wages's picture

Oddly enough, the ISDA still hasn't approved any comments on that blog. ^_^

Do NOT follow this link or you will be banned from the site!