GREECE CUT TO SELECTIVE DEFAULT FROM CCC BY S&P!!! Deutsche Bank Hid $12 Billion In Losses To Avoid A Government Bail-Out!!!

3 minzerohedge‏@zerohedge

Greece Is In Selective Default [link to www.zerohedge.com] …

zerohedge‏@zerohedge

Greek t-shirt reads: "Third Point made a 150% return on Greek bonds in 4 months and all I got was this Selective Default"

zerohedge‏@zerohedge

ECB is delighted to accept Greek defaulted bonds as collateral.

On October 22, we alone asked a very relevant question, which apparently nobody was able to answer:

zerohedge @zerohedge Does anyone in Europe realize that a Greek distressed debt buyback is yet another event of default?
22 Oct 12 ReplyRetweetFavoriteWell, one entity did. S&P.

•GREECE CUT TO SD FROM CCC BY S&P
•S&P CUTS GREECE'S LONG-TERM DEBT RATING TO 'SELECTIVE DEFAULT'
SD, by the way, stands for Selective Default. At least the acronym is not Selective Transitory Default: that would really summarize the situation.

In other words, Greece is technically default, and why? To make sure a few hedge funds have a great year and get paid on the Greek bonds at double their cost from 4 months ago. The Greek people just get a t-shirt that says "Third Point made a killing, and all i got was this louse Selective Default."

But the best news is that Goldman's European central bank branch is now delighted to accept defaulted, whether selectively or unselectively, Greek bonds as full faith and credit collateral of that multi-colored European currency.

[link to www.zerohedge.com]

zerohedge‏@zerohedge

EUR rising now that defaulted Greek bonds will collateralize it

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Selective Default is not Massive, Global, Uncontrolled Default. Bullish.

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Team of Deloitte's most crack auditors rumored to be entering Greek finance ministry.

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@TFMkts At least not being attacked is the hubris one can daytrade insolvent bonds on hope and prayer of taxpayer cram downs

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BOOM: DEUTSCHE BANK HID ABOUT $12 BILLION IN LOSSES, FT SAYS
maby related to Greece???

zerohedge‏@zerohedge

Luckily, only DB hid billions in losses among Europe's insolvent banks

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Former Deutsche Bank employees make complaints to US regulators

well what will be the euro and markets tomorrow???

Just crossing the wires – S&P has stripped Greek sovereign debt of its CCC rating and declared it in "selective default."

S&P has yet to issue a press release related to the rating action.

A media contact told Business Insider that S&P's internal system that generates the press releases is down, which means they themselves can't even get to the press release yet.

As soon as the release is available, we will post it here


Read more: [link to www.businessinsider.com]

zerohedge‏@zerohedge

Bombshell: Deutsche Bank Hid $12 Billion In Losses To Avoid A Government Bail-Out [link to www.zerohedge.com] …

Selective default is in all effect bankruptcy. Greece is now entering the accelerated stage of collapse.

Forget the perfectly anticipated Greek (selective) default. This is the real deal. The FT just released a blockbuster that Europe's most important and significant bank, Deutsche Bank, hid $12 billion in losses during the financial crisis, helping the bank avoid a government bail-out, according to three former bank employees who filed complaints to US regulators. US regulators, whose chief of enforcement currently was none other than the General Counsel of Deutsche Bank at the time!

From the FT:

The three complaints, made to regulators including the US Securities and Exchange Commission, claim that Deutsche misvalued a giant position in derivatives structures known as leveraged super senior trades, according to people familiar with the complaints.

All three allege that if Deutsche had accounted properly for its positions – worth $130bn on a notional level – its capital would have fallen to dangerous levels during the financial crisis and it might have required a government bail-out to survive.

Instead, they allege, the bank’s traders – with the knowledge of senior executives – avoided recording “mark-to-market”, or paper, losses during the unprecedented turmoil in credit markets in 2007-2009.

Two of the former employees allege that Deutsche mismarked the value of insurance provided in 2009 by Warren Buffett’s Berkshire Hathaway on some of the positions. The existence of these arrangements has not been previously disclosed.

Naturally, DB is defending itself in the only way it knows: "this is complicated stuff, and we know better than those guys." In other words, this is just a "tempest in a teapot." Where have we heard that before...

The bank said the investigation revealed that the allegations “stem from people without personal knowledge of, or responsibility for, key facts and information”. Deutsche promised “to continue to co-operate fully with the SEC’s investigation of this matter”.

The complaints were made at different times in 2010 and 2011 independently of each other. All of the men spent hours with SEC enforcement attorneys and provided internal bank documents during multiple meetings, people familiar with the matter say.

SEC enforcement attorneys eh? Because this is where it gets really fun: the person who was in charge of DB's legal compliance at the time was none other than Robert Khuzami. The same Robert Khuzami who just happens to be the chief of enforcement at the SEC!

Robert Khuzami, head of enforcement at the SEC, has recused himself from all Deutsche Bank investigations because he was Deutsche’s general counsel for the Americas from 2004 to 2009. Dick Walker, Deutsche’s general counsel, is a former head of enforcement at the SEC. The SEC declined to comment on the investigation.

Sadly, the "we are too sophisicated" defense may not be very effective this time.

Two of the former Deutsche employees have alleged they were pushed out of the bank as a result of reporting their concerns internally.
One of them, Eric Ben-Artzi, a risk manager at Deutsche, was fired three days after submitting a complaint to the SEC. In a separate complaint to the Department of Labor, he claims his dismissal was retaliation for his allegations.

Matthew Simpson, a senior trader at Deutsche, also left the company after submitting his own complaint to the SEC. Mr Simpson declined to comment. Deutsche Bank paid Mr Simpson $900,000 to settle his anti-retaliation lawsuit. Reuters reported in June 2011 that Mr Simpson had raised concerns about improper valuation of the derivatives portfolio.

The third complainant, who worked in risk management and has requested anonymity, raised his concerns to the SEC and voluntarily left the bank.
[link to www.zerohedge.com]

Donald trump has declared Bankruptcy several times. He always bounces bank. The executives at Solyndra are doing just fine as well.

The East German witch
Angela Merkel will destroy the
Very fabric of Greece,
Italy, and then Spain and Portugal. The
Socialist agenda, neé Comintern, is
Thinking long term and due to apathy is
Openly pursuing an agenda now that
Communism is thought to be dead.
Kooks is what they will label you is you point this out.

At some point, like maybe right now.... there is just no more "money" to paper-over the hole in not only the Greek economic system, but the Entire Global Fiat Money System...

None of this is "sudden" or unexpected. The dominoes began falling in July/August of 2008 in earnest. Before they were merely leaning. This is like one of those huge gymnasium size domino projects; all have tumbled over but the last few rows.


The whole world will soon collapse economically and nuclear war is likely to hide the audit trails, eliminate the surplus population and obscure the real cause of the chaos. After all, in the rebuilding, TPTB would like to think their heirs are smart enough to con the world into another fiat scheme, so they can fleece the sheep one more time.

In these Final Moments, days maybe weeks, unless you have already become self-sufficient/self-reliant as fully as possible; you are wasting valuable time and will lose the economic resource your "money" represents. While it still has purchasing power and there are desirable items to own to enable your personal and familial perseverance, you will face complete ruin if you fail to Take Action NOW...


Greece, Japan, UK, USA, Germany, France, China, Mexico, Spain, all will fail and chaos will ensue world wide. That is THE PLAN. Hope you and yours are out of the line of fire...

Maybe you should go look up the definition of derivative.

2 weeks till it all blows

That sounds about right.

yep they will try to kick the can til the 21st

yeah right! lol typical GLP response :)

Just read about it, but wait for the reactions tomorrow (now it is 1.45 am here. The first reactions for the online media and some people who post at the banking news sites are very careful or nearly indeferent "wait till tomorrow afternoon to see what happens at the stock market and about the buyback of the greek bond", "it happened again in February".. etc

but i do believe the deutche bank news is more important right now and we will see the reactions tomorrow.

Last Edited by Ostria1 on 12/05/2012 06:53 PM

Will this start a derivatives unwind????