Years delay in Greek restructuring shifted $20 Billion from Banks to taxpayers!
When Greece was first rescued by the European Union and the International Monetary Fund in May 2010, lenders in other EU nations held $68 billion of its sovereign debt, according to the Bank for International Settlements. If Greece had defaulted, banks would have lost $51 billion at a 25 percent recovery rate.
Banks’ holdings of Greek bonds fell by more than half to about $31 billion over the next 15 months, according to BIS, cutting creditors’ losses at last week’s swap by at least 45 percent. Lenders are protected against further losses thanks to sweeteners from the EU to encourage the exchange. Meanwhile, Greece’s debt remains almost unchanged and the risk of future default is now mostly borne by the public. The same playbook is being used with Portugal and Ireland.
Europe's taxpayers should wake up, it is their savings, pensions, mortgages and job security in play here. Read the resignation letter of a senior Golman Sachs employee published in the New York Times yesterday (tweeted first thing yesterday morning by this blogger,) and remeber, it was under Goldman's advice that the earliest Greek skullduggery can be proven to have occurred. It is fomer Goldman employess now acting at the Head of the ECB and the EU puppet Prime Minister of Greece.
Labels: Euro collapse