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To: Paxb2u who wrote (82610)11/2/2011 7:11:06 PM
From: Brian Sullivan1 Recommendation  Respond to of 217927
 
Thats rule number 1:

Rule #1: There can never be an event that causes a sovereign CDS to actually pay off.



To: Paxb2u who wrote (82610)11/2/2011 11:57:42 PM
From: RJA_  Read Replies (1) | Respond to of 217927
 
>>>The problem is that the European sovereign banks own a lot of the Greek debt. If the US banks don't pay off CDS, then France and Germany could have a problem.

And if US banks are forced to pay off the CDS's, which I assume are unreserved?