U.N. Holds Behind The Scenes Greek Derivatives Talks As Transparency Questions Raised

A key option in Greek debt negotiations, sovereign debt forgiveness, is apparently off the table as non-transparent Greek derivatives take priority over a compromise.

The most unreported story in the Greek negotiation is the unknown impact of the derivatives contracts that underlie the economic system. What banks have exposure? Who is the primary U.S. regulator dealing with the banks that have Greek derivatives exposure? How inner connected is that exposure and what are the trigger points that could ignite another issue similar to the 2008 derivatives crash?

In a Wall Street Unfiltered podcast released today, U.N. sovereign debt expert and Executive Director of Jubilee USA Eric LeCompte reveals behind the scenes discussions regarding concern over the lack of transparency in the unregulated derivatives contracts behind the Greek economy.

Connections to a shadowy world of finance found in Greek derivatives and debt forgiveness

Pointing to what has recently become a “problem” in Greece and even a point that is obstructing Greece from getting debt relief – debt forgiveness is said to trigger a technical derivatives default, but no one knows for sure because the issue is non transparent – LeCompte said the derivatives have “connections to a more shadowy world of finance. Generally most governments in the world express concern with how it operates.”

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ETFs: GREK, FXE, EZU, FEZ, HEDJ