"Since Detroit’s Chapter
9 filing in late July, it has slipped off the front-pages to some extent. The
Chapter 9 process is underway and Barclays provides a deep-dive look at the
various liabilities involved in the bankruptcy. From the pension obligation
certificates (POC), which they believe could be subject to the most volatility
over the course of the bankruptcy process and will likely recover no more than
30 cents on the dollar, Barclays' muni team expands on the various aspects of
the eligibility process, historical precedents (such as Stockton, CA), and the
tough decisions that investors face in deciding between short-term goal of
certainty of payment or a long-term goal of maximizing returns. The judge has
set a mid-March 2014 deadline for the city to file its plan of
adjustment."
Pokazywanie postów oznaczonych etykietą bankructwo. Pokaż wszystkie posty
Pokazywanie postów oznaczonych etykietą bankructwo. Pokaż wszystkie posty
The Real Cyprus Template (the one you're not supposed to notice)
"The
Cyprus situation had been simmering for at least a year when in March of 2013
it finally broke; Cyprus had a week to take care of its banking situation or
else face a cutoff of access to the eurosystem by the ECB. This brought matters
to a head; the Cyprus Bail-In was finally settled upon, where uninsured
depositors in the two largest banks in Cyprus took major haircuts, and must
wait for return of their money until the assets of the banks are run down.
The banking problems in Cyprus had their roots in the Greek Sovereign Default, and were known by the general public for about a year prior to the recent default; a New York Times article dated April 11, 2012 lays out the particulars. (...)
Let's imagine you ran a German bank, and you paid very low rates to your overnight depositors. You have a great deal of really cheap money on your hands. What are your options to make money? You can either loan money to German homeowners one by one, but there are only so many German homeowners, and they only want to borrow so much money. So after loaning all you can loan, you search the world to try and find another bank that is advertising high rates for deposit money, and you stumble on the banks in Cyprus. (...)
Looking at the timeline, even as late as the end of 2011, when it was clear Greece would default and the banking regulator had to know the banks in Cyprus were doomed, the amount of Eurozone-bank derived deposits in Cyprus was over 20 billion euros, a good portion of which would be subject to massive losses if the Cyprus Template were to be applied at that moment. (...)"
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