Investor threat to second Greek bail-out

The lead negotiator for private holders of Greek debt has said that investors are unwilling to accept greater losses on their bonds than the 21 per cent agreed in July, jeopardising eurozone plans to finalise a second Greek bail-out by the end of next week.

Charles Dallara, managing director of the Institute of International Finance, criticised European leaders on Friday for failing to allow the July deal to proceed. He said any greater losses imposed on Greek bondholders could prompt investors to sell the sovereign debt of other eurozone countries, destabilising the single currency.

“We do not see that a compelling case has been made to reopen the deal,” Mr Dallara told the FT. “A deal is a deal.”

Securing a voluntary “haircut” from Greek bondholders has been the centrepiece of the second €109bn ($150bn) Greek bail-out after a German-led group of creditor countries demanded private investors bear more of the rescue burden so eurozone taxpayers would not be saddled with the entire bill, as in previous bail-outs.

At the urging of Germany, other European leaders have in recent weeks agreed to reopen the July haircut deal, arguing that changed economic circumstances in Greece – including a plummeting in value of Greek bonds – meant bondholders should take a bigger hit.

http://www.ft.com/intl/cms/s/0/3be6b6aa-f676-11e0-86dc-00144feab49a.html#axzz1aSTlEFwT

Greek drama culminating in a banking tragedy: nationalize all these bankster institutions and we will have a better world.

 

A European trader who went Short on October 3rd?

 

taxpayers bailing out wealthy bond holders, crazy !

 

Fuck 'em.

 

I can empathise with them.

I am extremely upset with Interactive Brokers. I wrote some put options during the summer, but have now suffered some losses that are no fault of my own (the black swans did it...I saw one of them). A rogue trader at IB may have been involved as well.

They told me I now have negative equity, but I told customer support I am willing to accept at most a 20% loss and am waiting to hear back from them.

Given I am inconvenienced by this with IB, I would strongly recommend not using them. They're not very helpful with their customers.