Like They Have Much Choice At This Point?

As long as one person says Greece has clothes then the ECB will ignore the exposure

The European Central Bank will continue to accept Greek debt as collateral for loans unless all the major credit rating agencies it uses declare it to be in default, said a senior finance official.

The ECB would rely on the principle of using the best rating available from the agencies – Standard & Poor’s, Moody’s and Fitch – the official said. The comments came after S&P on Monday became the first agency to warn that a plan, pushed by France and endorsed by Germany, for banks to roll over their holdings of Greek debt into new bonds would constitute a “selective default”.

“The principle of using the best rating available.”

Now that’s a sound financial strategy if I ever heard one.

French and German officials said they were not unduly concerned by the S&P statement. They underlined that a rollover was unlikely to constitute a so-called credit event, which would trigger payments on credit default swaps, a form of insurance against default.

I wonder if I can tell Mastercard that the statement they mail me every month doesn’t really constitute a so-called credit event?

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