Comments on: CDS conspiracy theory du jour, Gretchen Morgenson edition http://blogs.reuters.com/felix-salmon/2011/11/20/cds-conspiracy-theory-du-jour-gretchen-morgenson-edition/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: LCWDC http://blogs.reuters.com/felix-salmon/2011/11/20/cds-conspiracy-theory-du-jour-gretchen-morgenson-edition/comment-page-1/#comment-35776 Thu, 09 Feb 2012 16:23:29 +0000 http://blogs.reuters.com/felix-salmon/?p=11183#comment-35776 Gretchen Morgenson is an idiot, pure and simple. She exhibits, at best, a rudimentary understanding of the things she writes about, but in this climate of “Wall Street is Evil” she’s made a name for herself (and a nice living) inventing scandals and imagining misconduct. I can’t read her anymore – I’m a die-hard liberal and I’m really close to canceling my NY Times subscription just so I won’t have to see her byline anymore.

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By: Danny_Black http://blogs.reuters.com/felix-salmon/2011/11/20/cds-conspiracy-theory-du-jour-gretchen-morgenson-edition/comment-page-1/#comment-33401 Thu, 24 Nov 2011 07:13:59 +0000 http://blogs.reuters.com/felix-salmon/?p=11183#comment-33401 alea, she gets these details wrong so often one has to wonder if it is stupidity, ignorance, carelessness or whether she is actively fabricating the stories.

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By: realist50 http://blogs.reuters.com/felix-salmon/2011/11/20/cds-conspiracy-theory-du-jour-gretchen-morgenson-edition/comment-page-1/#comment-33323 Mon, 21 Nov 2011 20:37:42 +0000 http://blogs.reuters.com/felix-salmon/?p=11183#comment-33323 I agree that it’s unseemly if a member of an ISDA committee is browbeating parties to accept a “voluntary” restructuring by making a veiled threat that CDS may not be triggered. The broader question, however, is then whether any employee of a large financial institution should be on these committees. After all, in any sizable default one it’s essentially inevitable that a large money center bank or investment bank is going to have some financial interest, whether a long or short position.

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By: ARJTurgot2 http://blogs.reuters.com/felix-salmon/2011/11/20/cds-conspiracy-theory-du-jour-gretchen-morgenson-edition/comment-page-1/#comment-33322 Mon, 21 Nov 2011 20:20:00 +0000 http://blogs.reuters.com/felix-salmon/?p=11183#comment-33322 Face it Felix, Gretchen is much more pleasant to watch on video than you.

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By: IanFraser http://blogs.reuters.com/felix-salmon/2011/11/20/cds-conspiracy-theory-du-jour-gretchen-morgenson-edition/comment-page-1/#comment-33313 Mon, 21 Nov 2011 17:15:17 +0000 http://blogs.reuters.com/felix-salmon/?p=11183#comment-33313 Thanks @alea_

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By: alea http://blogs.reuters.com/felix-salmon/2011/11/20/cds-conspiracy-theory-du-jour-gretchen-morgenson-edition/comment-page-1/#comment-33301 Mon, 21 Nov 2011 15:45:04 +0000 http://blogs.reuters.com/felix-salmon/?p=11183#comment-33301 It has been widely reported that the BNP contract with the greek govt. was ended in late october, (you would never guess that from the Morgenson piece). (I posted a link on twitter about this)
In addition, BNP has no material net position in greek CDS and no incentive either way for or against a default, also BNP has taken a large hit reflecting a 60% haircut on its greek bond holdings (more than €2.5 bln) , all of this is public knowledge but again none of this is mentioned by Morgenson.
And Poor “Belle Yang” is allegedly sitting on the ISDA DC, big deal! BNP doesn’t run ISDA, it’s certainly much better for investors to hear about what could happen from a DC member rather than from some ultracrepidarian at the NYT.

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By: IanFraser http://blogs.reuters.com/felix-salmon/2011/11/20/cds-conspiracy-theory-du-jour-gretchen-morgenson-edition/comment-page-1/#comment-33296 Mon, 21 Nov 2011 14:30:39 +0000 http://blogs.reuters.com/felix-salmon/?p=11183#comment-33296 Because she sits on the IDSA “determinations committee” that will decide what constitutes a “credit event” in both Greece and elsewhere in Europe, at the same time as being part of the BNP Paribas team appointed by the Greek government to help persuade investors to accept circa 50% haircuts on their bonds. A third conflict arises since BNP Paribas is, I believe, one of the biggest holders of Greek government debt, with about €5bn worth. Presumably in role 1, Yang has a vested interest in avoiding a “credit event”, as she does in role 2 (though for different reasons), but in role 3?
see also:- http://wallstreetpit.com/86248-how-do-yo u-cover-up-your-failure-the-greek-case

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By: ottorock http://blogs.reuters.com/felix-salmon/2011/11/20/cds-conspiracy-theory-du-jour-gretchen-morgenson-edition/comment-page-1/#comment-33289 Mon, 21 Nov 2011 10:24:28 +0000 http://blogs.reuters.com/felix-salmon/?p=11183#comment-33289 I have read your review of Morgenson’s piece and, on due consideration, believe that you didn’t like it, Felix.

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By: prk11 http://blogs.reuters.com/felix-salmon/2011/11/20/cds-conspiracy-theory-du-jour-gretchen-morgenson-edition/comment-page-1/#comment-33288 Mon, 21 Nov 2011 10:06:33 +0000 http://blogs.reuters.com/felix-salmon/?p=11183#comment-33288 As a “highly sophisticated player”, I find it highly disturbing that a member of a supposedly impartial ISDA committee is using her position to influence investors’ actions, whatever her motivations may be. Whether this belongs on the front page of the NYT is arguable, but Morgenson deserves credit for breaking the news. Will be interesting how the ISDA blog spins this.

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By: FelixSalmon http://blogs.reuters.com/felix-salmon/2011/11/20/cds-conspiracy-theory-du-jour-gretchen-morgenson-edition/comment-page-1/#comment-33280 Mon, 21 Nov 2011 04:56:30 +0000 http://blogs.reuters.com/felix-salmon/?p=11183#comment-33280 @IanFraser — what exactly is Yang’s conflict here? I have to say I don’t see it.

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