EU wants 60% haircut on Greek debt,private banks offer 40%...

[ASusilovic]

Financial companies, represented by the Washington-based IIF, proposed a loss of 40 percent on Greek debt, said a person briefed on the matter who declined to be identified because the talks are confidential. Luxembourg’s Jean-Claude Juncker, who leads the group of euro-area finance ministers, said yesterday that talks on private-sector involvement in a second aid package for Greece are focusing on losses of 50 percent to 60 percent.

http://www.bloomberg.com/news/2011-...kers-on-greek-rescue-as-bond-losses-loom.html

 

[dtan1e]

the fact that the equities market keeps going up with such fundamentals obviously shows that 60% is too low

 

[achilles28]

How will banks suffer a loss when they're later recapitalized by taxpayers?

 

[Lawrence Chan]

The politicos doing this probably never thought of the consequence -

The private investors, who are the ones wanted badly by the euro zone officials, will never buy the b.s. bonds / debt issues from this upcoming b.s. whatever save the day solution.

If these politicos can call for a haircut like this to the bank, they would obviously do the same to the private investors in the future.

=)