Fitch “calls out” the fraudulent CDS market

“Fraudulent” is my choice of words, not Fitch.

Fitch is one of the major credit rating agencies. This story is breaking in the London Financial Times. In the language necessary in their business, they are saying that the CDS (Credit Default Swap) market needs to clarify and simplify the language of what causes a sovereign debt “default event”, which requires the seller of the CDS to “pay up”. Greece’s “voluntary” 50% “haircut” is being floated as a way to protect the CDS sellers from what is an obvious default by any reasonable interpretation.

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2 Responses to Fitch “calls out” the fraudulent CDS market

  1. Art Stone says:

    Moody’s – who stabbed S&P i the back for its downgrade of US Debt is adding their voice now that the entire CDS market is a sham and is undermining the entire notion of being able to objectively measure risk in the entire bond market.

  2. Piquerist says:

    Nanny states under any and all circumstances continue apace spending more than they have or make — and the band played on. Remember when those pesky Rooskies said the West would sell them the ropes they would use to hang us? Truly, we live in interesting times.

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