Papandreou (Greek Prime Minister) Weighs Legal Action Against US Bank for Role in Greek Crisis

Naked Capitalism ^ | 16 May 2010 | none

[SkyPilot]

At first blush, Greece’s prime minister George Papandreou statement that he is looking into litigation against banks that worsened the country’s financial woes sounds like pandering to his electorate.

Papandreou said the decision on whether to go after U.S. banks will be made after a Greek parliamentary investigation into the cause of the crisis.

“Greece will look into the past and see how things went,” Papandreou said. “There are similar investigations going on in other countries and in the United States. This is where I think, yes, the financial sector, I hear the words fraud and lack of transparency. So yes, yes, there is great responsibility here.”

Yves here. While this all sounds to those outside the EU like an effort to shift blame, the fact that Greece had a budget crisis does not mean that speculators weren’t trying to play the situation to maximum advantage. But any manipulation took place in the over-the-counter, and virtually unregulated credit default swaps market, so it would be interesting to see what legal theory Greece and other eurozone states could use to file a case. Regardless, the officialdom is looking into abuses:

In the days leading up to the May 10 announcement of a loan package worth almost $1 trillion to halt the spread of Greece’s fiscal woes, European Union regulators were examining whether speculators manipulated the prices of bonds and equities and contributed to the crisis.

The Committee of European Securities Regulators said on May 7 it was investigating “exceptional volatility” in the markets and would work with other regulators, including the U.S. Securities and Exchange Commission, as part of a coordinated clampdown.

[SkyPilot]

Well, there is gratitude for you.

The hard working German families realize they now get to subsidize the 52 year old Greek "retiree" so he can sit in a coffee shop all day and pontificate with his two dozen "retired" friends about how unfair life is.

Now, the US taxpayers (those who still pay taxes) can "invest" in these slobs as well.

Well US citizen, I am sorry that your pension, medical, and vaction benefits pale in compariston (that is if you still even have a job). But, we have to bail out these people.

They riot....you know.

[jpsb]

bump

[cripplecreek]

It is our true policy to steer clear of permanent alliance with any portion of the foreign world.

-George Washington.

[SkyPilot]

Related article:

‘Mummy’ Merkel battered as Germans lose faith in EU - - After bailing out Greece and now the euro, Germany is fed up with being Europe’s paymaster

The multi-billion-euro payout for Greece, followed by an even more expensive rescue package for the threatened single currency, has created the greatest political climate change in a generation.

Suddenly Germans are asking questions about the European project that has been the bedrock of their politics for 60 years, leaving Angela Merkel, the chancellor, under fire from the electorate, the opposition and her own party.

It took a stand-up display of table-banging aggression from President Nicolas Sarkozy and an intervention on the telephone from President Barack Obama to get Merkel to agree to the euro package.

“We foot the bill for EU disaster,” screamed a headline in Bild, the tabloid newspaper. Christoph Schmidt, a government economist, responded by warning: “Germany cannot become Europe’s paymaster.”

This is all the result of a typical Socialist mindset - - someone else works hard and has more money than I do, so they should "pay."

[SkyPilot]

The word "Monetary" come from the Greek words "Money", meaning yours, and "Tary" meaning you work hard for me.

[Liz]

....US taxpayers can kiss $140B Euro bailout goodbye......

So who is pocketing the $140B?

Corruption is Greece is so rampant ........when the current government came to power in October, it found a $2.6 million order for repairs to a place where Greek pols parked their cars. They ended up doing the repairs for $26,000. Clearly corrupt Greek pols were planning to suckup the $2.6 million.

=========================================

Goldman Sachs confesses it is being investigated for helping Greece hide its debts
UK DailyMail | 11 May 2010 | Lucy Farndon
FR Posted on Tuesday, May 11, 2010 by EBH

Goldman Sachs has admitted that it is under investigation for helping Greece to hide its vast debts. The controversial Wall Street bank - nicknamed the Vampire Squid because its tentacles stretch far and wide - is accused of having profiteered out of a complex currency deal that helped Greece massage its finances.

In a regulatory filing in the US, Goldman disclosed that is 'subject to a number of investigations and reviews by various governmental and regulatory authorities' in connection with its financial transactions with Greece.

The European Commission has already been probing the bank's relationship with Athens. It is unclear from the disclosure, how many other countries might be looking into its dealings with the Mediterranean state.

The Wall Street giant is claimed to have received as much as £192m in fees by entering a complex currency transaction in 2001 that helped Athens borrow cash without putting it on the books as a loan. (Excerpt) Read more at dailymail.co.uk ..

[TigerLikesRooster]

On the bright side, Greece is hastening the inevitable collapse of EU. All European socialist master plans are turning into ashes.

[Eyes Unclouded]

What is that fellow in the lower left up to? He can’t shoot with this fingers.

On a serious note this latest package led to rumors about the euro falling. With electoral changes likely in the US and Germany (already took place in the UK) and the inevitability of more bailouts for the P.I.G.S how long before the well runs dry so to speak?

[alice_in_bubbaland]

LOL!
Note to Greece: Put some windex on that!

[xcct838]

If the whole of Europe doesn’t find a way to stop George Soros and the Goldman/hedge fund hyenas, they will be picked off one by one. Then it’s our turn.

Make arrests for fraud and outlaw credit default swaps.

[jpsb]

I thing this investigation is a good thing, since I strongly suspect GS is very corrupt. I also worry about the rule GS plays in our federal government. As long as the investigation does not become a witch hunt I’m OK with it.

[OCCASparky]

Nah, you had nothing to do with your going bankrupt, did ya, Greece?

[hal ogen]

Greeks are socialist morons. Sue away you bastards.

[DontTreadOnMe2009]

Here is how they really talk

when they think YOU are not listening

---

Goldman Sachs and the Art of Ripping Your Clients’ Faces Off

http://www.freerepublic.com/focus/f-news/2500879/posts

[Mouton]

I am sure she will remember she was coaxed into this by der leader, Ozero.

[TheBattman]

This turd is cut from the same political cloth as Obummer... radical, blame everyone else, socialist...

[Liz]

Thanks for the link.

It’s amazing that people actually believed the oily G/S crowd.......and got themselves involved in these scams.

Oh, but wait——look how easily some of these snake oil salesman get into office.....take Obaama....p-l-e-a-s-e.

[moovova]

Barackio has been wanting to give Greece money...here’s a good opportunity. I can see it now...

Obowma walks up to Papandreou, bows deeply, says “I apologize for America’s abominable ways.”, and hands the Greek prime minister a check.

The prime minister responds “What took you so long.”

[reformedliberal]

The prime minister responds “What took you so long.”

---

and:

“When do we get another?

[dr_who]

Oh no!....Papa's using the Chewbacca Defense