A report in Die Welt says German financial firms were prepared to accept a far higher write-down...


A report in Die Welt says German financial firms were prepared to accept a far higher write-down on their Greek paper than the 21% eventually agreed to. At that level, Deutsche Bank will actually show a profit on its holdings. It makes one wonder what all the fuss was about over the past weeks.

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Comments (3)
  • Barry Crocker
    , contributor
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    At that level, Deutsche Bank will actually show a profit on its holdings.

     

    Comical !!

     

    They placed a bet, lost and still won : )
    24 Jul 2011, 08:44 AM Reply Like
  • Tack
    , contributor
    Comments (16281) | Send Message
     
    The "fuss" has been about the usual: the mass media selling headlines and the traders making billions fear mongering.

     

    We're in round two, right now, with the U.S. debt celing.
    24 Jul 2011, 11:51 AM Reply Like
  • User 357345
    , contributor
    Comment (1) | Send Message
     
    It's not that simple and I quote John Mauldin:

     

    The plan claims haircuts will only be 21%. But that assumes you can sell the new bonds at a 9% interest rate. If the interests rate demanded by the market are 15%, which is closer to reality, the haircuts are closer to 67%, after what appears to be an initial 21% cut.

     

    Will any institution not immediately try and get those bonds into the hands of the ECB?
    24 Jul 2011, 03:48 PM Reply Like
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