This story gets more surreal by the day. First it was the Spanish CIA, and now Greek daily To Vima reports that the Greek National Intelligence Service, instead of focusing on such potentially more pressing issues as who may be bombing various offshore financial offices, or possible Cypriot unrest, is hot on the heels of those who were solely responsible for the Greek bond market collapse: four hedge funds who have had the temerity to buy and sell Credit Default Swaps (or, heaven forbid, GGBs). And they are not doing it alone: French and British intelligence agencies have also joined in the fray, actual people blowing themselves up all over the place be damned. Next up, after the obligatory sov CDS trading ban: selling of government bonds will only be legal during a full lunar eclipse, between the hours of 2:03 am and 2:04 am, when Mercury is in retrograde, and when Joaquin Almunia is not eating spam straight from the trough. In other words never.
A rough translation of the article which seems rather hell bent on just naming names:
It is obvious that a firm identification of speculators operating in European countries whose economies are tested together public and secret services of all concerned countries and the EEA is in constant communication with the National Center for espionage (CNI) of Spain, but also services in France and Britain.
O that we have already established by irrefutable evidence, the company "sortarise" more than any other in Greek bonds are the British Brevan Howard, which manages the largest hedge fund in Europe. According to official figures and they have seen the light of day, the Brevan Howard remained as the most recent open positions on Greek bond sale, reaping significant benefits from the surge in spreads above 300 basis points. The company is also specialized in investments in debt and in the case of Greece borrowed bonds mainly American and British banks that maintain their position on access to Greek titles.
The investigation led by the Greek authorities and the U.S. fund management company Fidelity International, although that does not specialize in short-term investments and methods corresponding to those followed by hedge funds. The company currently manages over 220 billion dollars to individuals and institutions, while estimates of the dealing rooms concur that the funds of Fidelity held sometime after the election to 4.5% of the shares of National Bank.
Another company that has been identified for weeks 'shooting' the movement and its links to Greece is the Moore Capital, which belongs to the category of hedge funds. According to executives were asked to meet with officials of the Ministry of Finance one month after the elections and after ascertaining the state of the economy at first hand began to "sortaroun" in Greek bonds.
The investigation by the Greek authorities confirmed the end of the game played by the famous Mr. John Paulson, whose role was revealed very early on "The Step" with an investment of about 3.5 billion in Greek bonds, thereby earning the launch spread.
Just as an FYI - all Greek spy admissions tests from now on will include a 60 question section on how to spot rogue CDS traders, and how to convert from running spread to points upfront. .