English: Logo of The Goldman Sachs Group, Inc. Category:Goldman Sachs (Photo credit: Wikipedia)
Whilst this news is not new, this article is well worth reading – it provides some amazing detail. Check it out!
via How Goldman Sachs Profited From the Greek Debt Crisis | The Nation.
According to the article, Goldman Sachs, the US investment bank, made EUR600 million for helping Greece to window dress borrowings. It seems the swap instruments were the wrong bet after the 9/11 attacks caused bond yields to crash. By 2005, Greece owed double the original debt. Another interesting twist is that the deal was restructured in 2005 by the managing director of Goldman’s international division – this was Mario Draghi, the current head of the ECB. It’s the ECB that is providing massive financial support for Greece’s banks so that they can open next Monday.
It all seems a bit incestuous. Remember thet a large part of the first two Greek bailouts went to helping large French and German banks, rather than to help Greece rebuild her economy.
Perhaps Greece really is a special case and deserves some extra help?