Agreement on crisis summit – The Blender Brussels

Before publication of the details of the rescue plan is unclear whether this is the end to give a uniform assessment. The involvement of banks has so far been declared as “voluntary.” Whether they remain genuinely voluntary, is open. “The practical implementation of the creditor’s participation might still cause some uncertainty in the markets,” warned Bank Association CEO Michael Kemmer. There are still some important variables of the decisions by the euro-summit to be clarified. The rating agency Fitch announced and dashed in front while the Greek bonds rated “limited-payment” to be provided. The Derivatives Association ISDA sees no reason however for a “credit event”, ie, a formal default. This assessment is of great importance, because the spread is to prevent the crisis on the market for credit derivatives as credit default swaps (CDS). A devastating chain reaction, such as after the collapse of Lehman Brothers, which had been triggered by the time the CDS appears to be so unlikely.

It is probably much lower than one would imagine the expression of Josef Ackermann. “It hits us hard,” was the German bank chief decisions of the EU summit commented. But lawyers do not share this assessment: “This package is for sale as bank participation is hard to accept,” criticizes Reifner Udo, a professor of business law at the University of Hamburg and scientific director of the Institute of Financial Services. “Much more honest you would have to say: This is a bank rescue package.”