E.U. Ministers Compromise On Naked Swaps

European Union finance ministers have reached a compromise on naked selling but failed to agree on a ban on naked default swaps, as demanded by Germany and the European Parliament, reports Associated Press.

European Union finance ministers have reached a compromise on naked selling but failed to agree on a ban on naked default swaps, as demanded by Germany and the European Parliament. After heated debate, the ministers settled on investors in credit default swaps having a “reasonable expectation” of obtaining the underlying government bonds, as opposed to the Parliament‘s position that the buyers must obtain the asset within one working day.

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