A panel comprising of representatives from 15 large banks, hedge funds and investment houses (or the International Swaps and Derivatives Association - ISDA) is apparently holding a meeting as we speak to issue a verdict on whether or not Greece΄s debt restructuring have triggered credit default swap contracts, or CDS.
The Wall Street Journal said in an article on Thursday that no outsiders can participate in the meeting, and no transcript will be made public. When a decision is announced the committee doesn΄t have to provide an explanation. There is no opportunity for investors to appeal. The impact of their decision, said the same report, will reverberate beyond the narrow confines of the Greek debt market and could affect investors across other European bond markets and the holders of $2.9 trillion in CDS on government debt around the world.
Most believe a credit default will be triggered on March 9th, regardless of the ISDA decision.
Nonetheless, the firms participating on the committee are well known. Some market officials say it is comprised by (surprise surprise) Goldman Sachs Group Inc. (GS), Deutsche Bank AG (DB, DBK.XE) and Morgan Stanley (MS).
Other members, claimed a separate report on olympia include (surprise, surprise AGAIN) the Bank of America / Merrill Lynch, Barclays, BNP Paribas,Credit Suisse, JPMorgan Chase Bank, NA, Societe Generale and UBS.
The consultants, noted the same article, include names such as Citibank and The Royal Bank of Scotland, while non-voting members expected to participate include BlueMountain Capital (Second Term Non-dealer), Citadel LLC (First Term Non-dealer), DE Shaw Group (First Term Non-dealer), Elliott Management Corporation (Third Term Non-dealer) and Pacific Investment Management Co., LLC (Second Term Non-dealer).
To understand the issue better hellasfrappe has also include a report which was posted by Porta2Porta on scribd.
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