Nov. 5 (Bloomberg) — The European Central Bank refused to disclose internal documents showing how Greece used derivatives to hide its government debt because of the “acute” risk of roiling markets, President Jean-Claude Trichet said.
We can’t let anyone see how Greece hid their debt. We can’t let the people know how the fraud was done. We certainly can’t name the people involved and outline the derivative scams that were used, lest other people look for more of them (gee, you think?) or even worse, hold us to account for intentionally ignoring them ourselves.
That’s what you were told this morning folks.
“The information contained in the two documents would
undermine the public confidence as regards the effective conduct of economic policyprove that we actively conspired with those who ripped off investors and deceived the markets” Trichet wrote in an Oct. 21 letter in which he rejected the appeal. Disclosure “bears, in the current very vulnerable market environment, the substantial and acute risk of adding to volatility and instability.”
Fixed it for ‘ya.
“The ECB, the European Commission and Eurostat need to show that they are aware of all the transactions and that they have no issue in disclosing them. The market has been left to think the worst.”
They were aware of them. They actively conspired in them!
Greece’s fiscal crisis turned attention to off-market swaps arranged by Goldman Sachs that allowed the country to hide the extent of its debt from 2000 onwards. The Goldman Sachs swaps, signed in 2000 and 2001, reduced the country’s foreign-denominated debt in euro terms by 2.37 billion euros and lowered debt as a proportion of GDP to 103.7 percent from 105.3 percent, according to a Feb. 21 statement by Goldman Sachs. Greece told Eurostat that the other swaps were significantly smaller than the Goldman Sachs agreements, according to the EU agency.
Oh, Goldman again.
Gee, why am I not surprised?