Greek CDS Overtures Fall on Deaf Ears in Washington…well duhhhh

Trying to confuse us??? I’ve noticed the word derivatives isn’t being said anywhere…nor the fact that they weren’t insured by AIG… hey…they knew the bet…don’t blame us!!! ~jude

* EU Commission wants G20 to debate issue

* CDS speculation worsens Greek woes, politicians say

* Proposals on derivatives, market abuse seen this year

STRASBOURG, France, March 9 (Reuters) – The European Commission will consider banning the naked selling of contracts that investors use to hedge against countries defaulting on their debt, its chief said on Tuesday.

Commission President Jose Manuel Barroso said the European Union‘s executive would like the G20 group of developed and developing nations to discuss speculation in credit default swaps (CDS), a form of insurance against default.

Naked selling involves selling a CDS to a buyer who does not hold the underlying sovereign bond.

Barroso’s statement to the European Parliament followed claims by European politicians that speculation in credit default swaps on Greek debt worsened the country’s financial problems.

“A new, ad hoc reflection is needed on credit default swaps regarding sovereign debt,” Barroso said.

“In the short term, we must achieve the necessary coordination to ensure that Member States act in a coordinated fashion, most particularly for ‘naked’ practices. cont…

http://www.guardian.co.uk/business/feedarticle/8981221