lunes, 30 de enero de 2012

Important dates...

Today, January 30, is an important date in the evolution of the European crisis, now in its third year. Europe's political leaders are meeting to plot their next step.

February is less obvious but no less significant: US banks will release their 2011 financial statements. The US Securities and Exchange Commission's (SEC) "request" that US banks be more forthcoming and consistent in their presentation of their European positions could give a much clearer understanding of their exposure to Europe through credit default swaps (CDS).

Remember: so long as the Greek re-structuring is "voluntary", CDS can't be called. No one knows what the impact of bringing the CDS into play would be on the international financial system and no one wants to take the risk of finding out. It was CDS that brought AIG down in the fall of 2008.

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