An
interpretation of the new statements by the former chief executive
officer of Deutsche Bank
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Former
chief executive officer of Deutsche Bank, Josef Ackermann, in an
interview at the Greek newspaper, "Vima tis Kyriakis",
confirmed that in 2010, when the spreads of the Greek bonds were
still viable, he proposed a plan to give valuable time to Greek
economy so that to surpass its problems, but as he claimed, it was
not implemented due to the German "retreat".
The
former central banker stated that, in February 2010, he proposed a
plan to the then Greek PM, George Papandreou, concerning a
multi-billion lending support of Greece with the involvement of
Deutsche Bank.
The
goal of the plan was to secure valuable time for Greece to be
relieved partly from the national debt crisis, not to prevent it
completely. The support of the German and French governments was
necessary for the implementation of the plan. However, since banks'
bailouts were still "fresh" in taxpayers' minds and because
Germany was heading for crucial elections at that time, Berlin was
unwilling to participate, he stated.
Apart from Ackermann's statements,
the big question is what the Deutsche Bank requested for this plan,
that is, under what terms and conditions would be implemented. It is
worth to remember that Goldman Sachs proposed similar plans to the
Greek government in 2009 that were rejected. Right after the
rejection, rating agencies launched an attack against Greece through
continuous downgrades:
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“In the mid-October of 2009,
Goldman Sachs suggested to Greece a new financial product which
would ease, at great extent, the huge borrowing needs of the
country for the rest of 2009 and 2010 since some older bonds, of
huge value, were expiring during that period.”
“During the first days of
November, a team of Goldman Sachs arrived in Athens to persuade
the Greek side change its mind and close a new deal of financial
lending, according to which the Bank of China would be involved in
lending Greece, gaining some share in the National Bank of Greece
and in the Greek Organization of Railroads, as a return.”
“While the negotiations were in
process, the stock price of National Bank of Greece was rising in
NY and Athens stock markets. At the same time, the pressure on
Greek bonds and CDS stopped. Eventually, negotiations were not
successful, as the Greek side rejected Goldman's proposal for
good.”
“Nearly the next day of this
rejection, massive stock selling of the National Bank of Greece
was recorded again in NY stock market, as well as stocks of the
big Greek banks Alpha and Eurobank, and finally, stocks of the
whole Greek banking sector. Prices of the Greek bonds rapidly
dropped while Greek CDS and loan interest were rising rapidly,
bringing Greece closer to default, as it was more and more
difficult to re-fund her debt.”
“On December 12, Fitch
downgrades Greece further, rating the country with BBB+, while
announced that further downgrades are possible. S&P with
Moodys followed, downgrading Greece during December. The result
was a massive selling of Greek bonds and skyrocketing of country's
lending cost.”
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According to Ackermann, Deutsche
Bank made the proposition in February 2010.
On
9 April 2010, Fitch downgraded (accidentally?) Greek credit rating to
BBB- category from BBB+ . On 22 April 2010, Moody's downgraded
(accidentally?) Greece's credit rating to A3 from A2, while on 27
April 2010, Standard and Poor's downgraded (accidentally?) Greece's
credit ratings below investment grade to junk bond. A day later, on
28 April, Greek/German 10-year debt yield spread surpassed
(accidentally?) 1000 basis points.
(http://en.wikipedia.org/wiki/Greek_debt_crisis_timeline)
Was
the real reason for the final attack against Greece, the fact that
the country rejected Deutsche Bank's plan, as happened in 2009 with
Goldman Sachs? It is worth to remember that both these super-banks
are permanently included in the Primary Dealers list concerning the
Greek bonds, and according to a "riddled" legislation, they
have the right to participate in all liquidity processes by the Greek
Public in money markets, to supervise and control these processes, as
well as enjoying special privileges.
(http://failedevolution.blogspot.gr/2013/11/an-example-of-how-banking-cartels.html)
In
any case, Ackermann's statements prove that the bailouts of banks is
the top priority for the politicians, while rescuing entire countries
becomes a secondary issue. As he said, the German government, in
front of elections, decided to postpone help to Greece because the
German taxpayers were already annoyed by the banks' bailouts, which
means that banks are considered more valuable than entire nations.
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