HGAA Bank Nationalised in Austria Post author By Philip Lane Post date December 14, 2009 See the details in this FT article. Categories In Banking Crisis Tags Bank nationalisation 6 Comments on HGAA Bank Nationalised in Austria ← Post-Budget Analysis from Minister for Hardship → Mankiw on Fiscal Policy 6 replies on “HGAA Bank Nationalised in Austria” @ Philip, “The risk situation of this bank represented an enormous threat to the republic of Austria, its financial industry and the whole economic area in the last days and weeks,” Josef Pröll, finance minister, told reporters at the end of marathon talks with Georg Fahrenschon, his Bavarian counterpart, and shareholders. ”We jointly could avert this threat.” Well thank God the Irish Banks are well capitalised. 😆 I wonder just how long this fiction can be maintained. Greece warned to act over default risk http://www.ft.com/cms/s/0/671037f8-e817-11de-8a02-00144feab49a.html “Europe’s economic and monetary affairs commissioner, Joaquín Almunia, told Spanish newspaper El Pais on Sunday that Greece could not rely on the eurozone to come to its rescue. “If Greece does not take the necessary measures to overcome its problems, the eurozone won’t be able to take them in the name of Greece,” he told El Pais, a Spanish newspaper.” ““Other countries in trouble have already taken measures. If we don’t quickly follow suit the adjustment will be imposed by markets and it will be violent,” Mr Stournaras said.” Who’s on the wrong end of counterparty risk in the naked CDS market? @Greg “Who’s on the wrong end of counterparty risk in the naked CDS market?” If as Morgan Kelly wrote our bondholders were insured one would have to say that NAMA is either: A) Entirely a bailout for Irish mega developers. B) Irish mega financiers may have been insuring the bondholders and were facing financial ruin. As with everything else we will never be told. The one thing about the CDS and other derivatives markets is that they offer at least a fig leaf of cover. They will be good for at least the first few 000,000,000s of claims made. After that though?!!!!! If I take the premium payments and then tell everyone that if they claim I cannot pay, is it fraud? The threat being that if I make my straw man status public all the relevant debts will be devalued and trigger other calls on other debt, triggering widespread default? Meaning bang wallop! Just look at what the US banks have been doing when the chain of mortgasge securities cannot be shown on paper in court. Quite legally they void the threatened foreclosure! Is this replicated worldwide in the derivatives market? What a way to make money! http://ftalphaville.ft.com/blog/2009/12/14/111296/goldmans-collateral-damage/ Comments are closed.