ISDA (International Swaps and Derivatives
Asssociation)Responsible for a very important decision this
week. Determines what a credit event is, if they agree a
default the 5 Banks would be insolvent. Bear in mind the ISDA is
made up of the membership banks that hold the credit default
swaps.
The five big US banks that hold 97% of
the CDO's obviously influence the ISDA
- the five big US banks effectively determine their own fate.
- If they deem a default they seal their own fate.
- So they won't declare a default event.
- Claims MFG went in view of having gone all in buying Greek
default derivatives
- Not deemed a default so MFG went belly up.
- If not declared a default event - those holding Greek
default insurance, take
the full haircut hit.
(MFG Mk II, III, IV etc)
- Counterparty dominoes
The quiet paper over, & QE to infinity.
- In which case blue touchpaper lit - stand well back
\\\IMPENDING/// ISDA Report!!!...
Posted by saturn6 on 31st of Jan 2012 at 04:44 am
Listen to the interview with Jim Sinclair here...
The Impending Undeclared Default Of 5 Major US Banks
ISDA (International Swaps and Derivatives Asssociation)Responsible for a very important decision this week. Determines what a credit event is, if they agree a default the 5 Banks would be insolvent. Bear in mind the ISDA is made up of the membership banks that hold the credit default swaps.
which they won't let happen...
Posted by dylan398 on 31st of Jan 2012 at 07:54 am
which they won't let happen...
Exactly!!...
Posted by saturn6 on 31st of Jan 2012 at 08:00 am
- the five big US banks effectively determine their own fate.
- If they deem a default they seal their own fate.
- So they won't declare a default event.
- Claims MFG went in view of having gone all in buying Greek default derivatives
- Not deemed a default so MFG went belly up.
- If not declared a default event - those holding Greek default insurance, take
- Counterparty dominoes
The quiet paper over, & QE to infinity.
- In which case blue touchpaper lit - stand well back
So who holds Greek default insurance? It aint mom and pop
Posted by ragwing on 31st of Jan 2012 at 08:33 am