Fed eyes insurance contracts on Greek debt

[HeresyLives]

Fed eyes insurance contracts on Greek debt

Bernanke says central bank looking into Goldman Sachs and other Wall Street firms' use of a sophisticated investment instrument to make bets Greece will default on its debt



Jeannine Aversa

Washington — The Associated Press
Published on Thursday, Feb. 25, 2010 10:07AM EST

Last updated on Thursday, Feb. 25, 2010 1:09PM EST



Federal Reserve chairman Ben Bernanke told lawmakers Thursday that the central bank is looking into the use by Goldman Sachs (GS-N154.65-3.68-2.32%) and other Wall Street firms of a sophisticated investment instrument to make bets that Greece will default on its debt.

Mr. Bernanke said the Fed is looking into companies' use of credit default swaps, a form of insurance against bond defaults. Mr. Bernanke made the comments at the start of a Senate Banking Committee hearing, where the Fed chief delivered his twice-a-year economic report to Congress.

“Obviously, using these instruments in a way that intentionally destabilizes a company or a country is counterproductive,” Mr. Bernanke said, adding that the Securities and Exchange Commission probably will be looking into this matter as well.


http://www.theglobeandmail.com/report-on-business/fed-eyes-insurance-contracts-on-greek-debt/article1480901/

[DJ13]

1. Like the Feds will do anything to their owners

lol

[HeresyLives]

2. I doubt Goldman Sachs is that powerful. LOL

People are making it into some kind of huge boogey-man in their minds.

[pansypoo53219]

3. the wall street casino

needs to just call it gaming now.

[cbdo2007]

4. Isn't he from Goldman Sachs?? Seems like a conflict of interest. Maybe an Independent Counsel

would work better here.