Greece…rest in peace

Posted: February 27, 2010 in Humour, Uncategorized
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Germany has steadfastly refused to bailout ailing Greece…but Greece might have a saviour after all. Deutsche Bank.

A bank that does not currently own any Greek sovereign debt (but has helped Greece place many a bond offerings and trades the debt subsequently…Taking on little default risk but pockets commissions every single time it offers its services….), might just play Greece’s messiah. The latest structure doing the rounds is German banks buying into Greece’s debt….but backed by a guarantee from Berlin.

So, Germany can’t/won’t bailout Greece by doling out moolah directly…but is perfectly happy backing domestic institutions sitting on mountains of debt themselves. A circuitous way of assuming sovereign default risk. What if the banks blow up, you ask? Germany will be right there, band-aid in hand.

Its politics, stupid!

Greece…rest in peace…

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