Greeks now undertaking a criminal investigation of London trader

http://www.guardian.co.uk/business/2011/apr/21/citigroup-faces-inquiry-over-greek-debt-rumoursThe Guardian has reported that a London Citigroup trader is going to face a criminal investigation by the Greek authorities and Interpol for sending out the below email. If there is evidence to suggest that the trader has been acting on inside information then please progress, but the email reads:

“MKT NOISE Over the last 20min, there seems to be some increased noise over Gr debt restructuring as early as this Easter weekend. Spreads are moving wider now with 2y spread +100 from +35 at midday, while Gr banks are at -4%, -6% vs +2% in the morning.

The last few days the talks over Gr restructuring/rescheduling have intensified, despite the ongoing denials by Gr and foreign officials.

If a credit event takes place it is crucial to see what the terms would be as a haircut would have a much different outcome vs an extension of maturities.”

To most apt investors the email is purely a well summarised indictment of the current Greek bond market situation tied within the political complex. The note also briefly states the market reaction towards the Greek banking sector. The mentioning of widening Greek CDS spreads would have completed the rout. On the basis of the three paragraphs the email contains nothing contentious, it is alarmingly difficult to see where the problem lies. While this is undoubtedly going to cause additional strain for the Greek government, hiding or criminally prosecuting individuals who are merely highlighting facts is unwise. It was laughable hearing that the Greeks were seeking additional war reparations from Germany to soften their debt burdens, but this is now comical. Greece has become a circus and their politicians have routinely been  shown to be liars and grossly ignorant of their financial difficulties; history has also been a testament to that.