European Union urges U.S. to join in action against speculators

[depakid]

Source: The Oregonian

European officials urged the U.S. to join in a crackdown on speculators who bet against Europe's currency union, warning they might ban some credit default swaps -- opaque financial instruments blamed for worsening the world financial crisis.

German Chancellor Angela Merkel said Tuesday that "quick action is needed," calling on the U.S. to "make a gesture" and curb the trades. Greek Prime Minister George Papandreou, in Washington, DC to meet with President Barack Obama, is also calling for curbs on speculation which he blames for making his country's debt crisis worse.

The European Commission threatened to ban "purely speculative naked sales on credit default swaps of sovereign debt" and said it would ask for a similar move globally at the Group of 20 summit of leading and emerging economies in June.

Credit default swaps are a form of insurance for buyers to protect them against the risk that a seller or borrower would default on a security such as a government bond. In "naked" sales, the buyer does not hold the underlying asset and faces no such risk -- but can make a profit on the swap itself. Papandreou on Monday compared the practice of selling naked credit default swaps to buying insurance on a neighbor's house and then burning it down to collect.


Read more: http://www.oregonlive.com/business/index.ssf/2010/03/european_union_urges_us_to_joi.html

[dkf]

1. I haven't seen any response from us yet

What is with that?

[DJ13]

2. The admin is waiting for orders from Goldman Sachs

[earcandle]

3. Yea.... our monetary system is run by greedy fuck heads. Lets shame them out of office. Tax evader

Tax evaders, that is a crime!

[girl gone mad]

4. As if.

For all intents and purposes, Wall Street owns our government.

[M155Y_A1CH]

5. Kick n/t