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Thread: ESM Treaty - Text - Ratification Processes and Legal Cases

  1. #76
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    Default Re: ESM Treaty - Text - Ratification Processes and Legal Cases

    This might actually help them. They were restricted from issuing new debt

    EFSF’s initial plan to issue a 3-year benchmark bond last week was postponed due to last week’s rating action by Moody’s which reduced France’s long-term debt rating from Aaa to Aa1. EFSF’s Deeds of Guarantee require that EFSF’s new issues, at the date of the issue, are covered 100% by guarantees of Member States with a rating, by each of the credit rating agencies, similar or better than the EFSF’s own rating. As a consequence of Moody’s rating decision on France, EFSF’s new long-term issuances (currently rated Aaa by Moody’s) would no longer satisfy this criteria.
    http://www.efsf.europa.eu/mediacentr...d.htm?lang=-en
    Politics is the gentle art of getting votes from the poor and campaign funds from the rich, by promising to protect each from the other. ~Oscar Ameringer

  2. #77
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    Default Re: ESM Treaty - Text - Ratification Processes and Legal Cases

    Quote Originally Posted by DCon View Post
    This might actually help them. They were restricted from issuing new debt

    http://www.efsf.europa.eu/mediacentr...d.htm?lang=-en
    What did I say when the EFSF was first set up ?

    http://www.politicalworld.org/showthread.php?t=4606


    Roubini, amongst others.
    the leveraged EFSF is a turkey that will not fly, because the original EFSF was already a giant collateralised debt obligation, where a bunch of dodgy, sub-triple-A sovereigns try to achieve, by miracle, a triple-A rating via bilateral guarantees. So a leveraged EFSF is a giant CDO squared that will not work and will not reduce spreads to sustainable levels. The other “turkey” concocted by the EFSF was supposed to be a special purpose vehicle where reserves of central banks become the equity tranche that allows sovereign wealth funds and the Bric countries to inject resources in a triple-A super senior tranche. Does this sound like a giant sub-prime CDO scam? Yes, it does. This is why it was vetoed by the Bundesbank.

    So, since the levered EFSF and the EFSF SPV will not fly – and there is not enough International Monetary Fund money to rescue Italy and/or Spain – the spreads for Italian debt have reached a point of no return.
    Last edited by C. Flower; 01-12-2012 at 07:35 AM.
    “ We cannot withdraw our cards from the game. Were we as silent and mute as stones, our very passivity would be an act. ”
    — Jean-Paul Sartre

  3. #78
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    Default Re: ESM Treaty - Text - Ratification Processes and Legal Cases

    The ESM has created EUR 39.5 Billion to recapitalise Spain's banks.

    This is effectively Spain's version of our Anglo Prom Notes, but handled via the ESM

    ESM Press release: ESM issues bonds for recapitalization


    For Spanish banking sector recapitalization
    Will consists of 2 bills, 3 floating rate notes, total amount Eur 39.5 bln
    Notes will be transferred to Fund for orderly bank restructuring (FROB) and were not funded via the market
    http://www.forexlive.com/blog/2012/1...apitalization/
    Politics is the gentle art of getting votes from the poor and campaign funds from the rich, by promising to protect each from the other. ~Oscar Ameringer

  4. #79
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    Default Re: ESM Treaty - Text - Ratification Processes and Legal Cases

    And so it begins...........The monster awakens
    Thomas Jefferson : Banking Establishments are More Dangerous to our Liberties than Standing Armies.

  5. #80
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    Default Re: ESM Treaty - Text - Ratification Processes and Legal Cases

    Quote Originally Posted by ang View Post
    And so it begins...........The monster awakens



    https://www.youtube.com/watch?featur...&v=-_1MvSWL1e4
    “ We cannot withdraw our cards from the game. Were we as silent and mute as stones, our very passivity would be an act. ”
    — Jean-Paul Sartre

  6. #81
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    Default Re: ESM Treaty - Text - Ratification Processes and Legal Cases

    ESM's Regling says the euro rescue fund would need new leverage instruments for direct bank aid. The existing ones can't be put to that use.
    .

  7. #82
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    Default Re: ESM Treaty - Text - Ratification Processes and Legal Cases

    German court to hear case against ESM, ECB bond-buying in June -

    BERLIN (Reuters) - Germany's Constitutional Court will hold a public hearing on June 11 and 12 on complaints against the euro zone's bailout fund, the European Stability Mechanism (ESM) and the European Central Bank's bond-buying program.

    The complaints, seven in total, reflect German unease about the mounting costs of dealing with the three-year debt crisis and fears that the ECB bond-buying program may violate the taboo against direct central bank financing of state budgets.
    http://www.chicagotribune.com/busine...0,165535.story
    Thomas Jefferson : Banking Establishments are More Dangerous to our Liberties than Standing Armies.

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