Comments on: Athens can capitalise on market interest http://blogs.reuters.com/hugo-dixon/2013/11/18/athens-can-capitalise-on-market-interest/ Mon, 18 Apr 2016 14:55:08 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: bluesky1900 http://blogs.reuters.com/hugo-dixon/2013/11/18/athens-can-capitalise-on-market-interest/comment-page-1/#comment-729 Mon, 18 Nov 2013 18:22:24 +0000 http://blogs.reuters.com/hugo-dixon/?p=700#comment-729 You are right. Greece should capitalize on market interest but not at the expense of the European and Greek taxpayers.

Yet, the taxpayers will foot the losses if the HFSF “neutralizes” the warrants, some investors received when they bought their shares as you you suggest.

Just a few months ago, the HFSF gave investors warrants for free to induce them to participate in the share capital increase of the banks. About 3.0 billion euro were raised compared to some 28 billion euro put by the HFSF in the four core banks. About half of the 3 billion came from foreign banks Societe Generale etc. which paid to leave Greece.

To suggest, the HFSF will have to “neutralize” the warrants, that is, to change their terms in favor of investors and incur a loss, may fit the plans of bank executives, who want to go back to the good old days of fat bonuses, and hedge funds. However, it does not serve the interests of the European and Greek taxpayers.

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