Whoops! CITI: Failure To Trigger Greek CDS Could Cause The Whole Euro Bailout To Fall Apart

There's an ongoing debate about whether or not credit default swaps (CDS) on Greek debt will be triggered in the event of the proposed 50% writedown. BusinessInsider writes that The crux of the debate seems to rely on whether or not the writedown is "voluntary."

However, Citigroup's Willem Buiter thinks failure to trigger these CDS would be catastrophic.

First, he argues that a 50% writedown is indeed a credit event worthy of triggering the CDS…. Failure to trigger would all but discredit the entire CDS market.

Read about the rest at http://www.businessinsider.com/citi-failure-to-trigger-greek-cds-could-cause-the-whole-efsf-to-fall-apart-2011-10