1. Greece Debt Crisis

2. Part 1: What trouble was Greece in?

3. Eurozone Since 1999 How can I join it? Greece

4. Part 1 Summary

5. Jan 1, 2001 reece finally joined the Euro Zone, becoming the 12th country to join the European single currency. G

6. Nov 15, 2004 Greece admitted fudging Euro Zone entry EU Standards: Deficit < 3% GDP Debt rate < 60% What about real figures in Greece?

10. Misreporting is revealed to the public

11. Credit ranking downgrading to “junk” levelGreece is in big trouble!

12. Feb 11, 2010 Goldman Sachs faced federal inquiry over Greek Crisis What really happened?

13. Part 2: the currency swap

14. The Deal Issues 10 billion dollars of bonds Swap into 8.4 billion Euros of bonds The Greek Government

15. Currency Swap 2011 $1 more billion

16. Benefits of the transaction NOT in the balance sheet NOT required to report to EU

17. Part 2 Summary

18. Bonds $10bn Market € 7.4bn €8.4bn $10bn Goldman Sachs

19. Currency Swap Lending Transaction Need to Report Currency Transaction No one Cares

20. Part 3: CDS Goldman Sachs Credit Default Swap: CDS

21. The loan if default Risk Loan Premium

22. CDS: no regulation NOT transparent 1 NOT traded on any exchange 2 NOT subject to securitiylaws 3

23. Consequence Greek Government Defaults A large compensation Greek Government does not default Appreciation of CDS

24. Part 3 Summary

25. Competitors German bank CDS sell

26. When Greece is said to “collapse” German bank Seller of CDS LOSER… Owner of CDS WINNER!!!