“We are in a state of war, in a battle against special interests, both at home and outside Greece. It is a battle against speculators and for transparency, so that markets are at the service of the people, not the other way around.”
– Greek Prime Minister George Papandreou, March 19.
TT Hellenic Postbank S.A., formerly Greek Postal Savings Bank, is a Greece-based banking institution. For over a century, the TT Hellenic Postbank S.A. has been a pioneering force in banking, entirely devoted to the service of Greek people and society.
Something of an intellectual challenge looms ahead for the Greek government.
From the English edition of the Kathimerini:
State-controlled Hellenic Post Bank (TT) spent nearly 1 billion euros last year to secure its positions against the possible bankruptcy of the Greek government, according to documents seen by Kathimerini.
In August, the bank bought credit default swaps (CDS) – a form of insurance on financial instruments – worth 950 million euros when the spread on the Greek five-year bond over the German Bund was at 135 basis points.
CDS products allow investors to purchase protection against the default of debt issued by governments, hedging existing positions.
TT’s management, which changed after the Socialists took power in October, sold the CDS when the spread was at 235 basis points in December, earning a profit of some 35 million euros, the documents show . . .
(H/T Zero Hedge)
Related links:
The CDS market has faith in eurozone unity – FT Alphaville
Greece vs everyone, BaFin and speculators edition – FT Alphaville
On the non-existent basis of a (Greek) CDS ban – FT Alphaville
Who’s selling Greek CDS? – FT Alphaville