Posted on 04/17/2009 12:24:20 AM PDT by TigerLikesRooster
CDS blamed for role in bankruptcy filings
By Henny Sender in New York
Published: April 17 2009 00:57 | Last updated: April 17 2009 00:57
Credit default swaps, the derivatives instruments that have figured prominently in the global financial crisis, are now being blamed for playing a role in two bankruptcy filings this week.
Bankers and lawyers involved in restructuring efforts say they are concerned some lenders to troubled companies, such as newsprint producer AbitibiBowater and mall owner General Growth Properties, stand to benefit from a default because they also hold default swaps, which entitle them to payments in such events.
(Excerpt) Read more at ft.com ...
Ping!
Bankers and lawyers involved in restructuring efforts say they are concerned some lenders to troubled companies, such as newsprint producer AbitibiBowater and mall owner General Growth Properties, stand to benefit from a default because they also hold default swaps, which entitle them to payments in such events = How to make money when things go bad or make things go bad for profit sounds like a book title to me.
Bump for reference. Interesting, to say the least...
Everyone except the taxpayer is eligible for a bailout.
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