It's just a guess, but the fact that the Greek CDS book was apparently so well-balanced that the net payments would have been $3 billion on $69 billion of swaps, made it easier for them to pull this stunt and declare them all void. But there must be individual institutions that were heavily long or short that get screwed by this.
I don't see how this doesn't just destroy the entire CDS market. Why buy something that can be waived at someone's whim? I certainly wouldn't.
"Sorry, sir, we decided your put options weren't really impacted by the drop in the stock price, just move along, nothing else to see here."
What crap. |
