going to move on to greece default swaps don't have to pay is their default insurance and greek debt won't be paid out the international swaps and derivatives association said after it was asked to rule whether part of the nation's one hundred seventy billion dollars bailout was a credit event ok we all know that greece apparently did not default but guess who sat on it is does determinations committee vote morgan chase. so interesting i thought they took risk in providing the market making function in this credit default swap market no i don't think any of us just get the reward that's their definition of capitalism as we went. we keep all the reward you take all the risk we get all the money you get nothing that's like apples and of course that's realism so finally here on j.p. morgan fast furious at m.f. global in days leading up to firms collapse one hundred sixty five million dollars transfer okayed in a flash so apparently at four fifty three pm five days before m.f. global holdings ltd collapsed an employee in a sick aagot office asked a coworker to move one hundred sixty five million dollars from one of the securities firms bank accounts to ano

speak with such gadgets and das a derivative expert and the author of extreme money a masters of the universe past the i asked the a the international swaps and derivatives association has determined a few days ago that the credit of events had not occurred in grace that would trigger payouts of three point two billion dollars in greek credit default swaps your thoughts max it's incredible greece writes off one hundred billion in debt they can't pay anything they don't have to your ice truck to get the. they need a massive bailout and guess what they have not defaulted this is remarkable and now let's go back a little bit in history and write about july last year this whole thing became an issue because everyone he was concerned about if greece actually could default well what would happen and all these credit default swaps which are basically credit surance contracts would be triggered and there was the dreaded c. word contagion and so when they came to doing this bailout and doing the debt write downs what they decided to do was to do in a very clever way which is to do this as a voluntary exchange and basically the banks would basically take the hit but they woul

know whether there's a technical default announced by an organization called the international swaps and derivatives association. the question is whether or not that means anything. everyone is very pleased about this positive step forward. it is the biggest deal of its kind. >> what are the collateral damages if they decide that this is a technical default by greece? >> that's an open question. it is a technical default. it does not need to effect anything, money changing hands, or anything. if there is such an announcement, what impact will it have on markets? how will the markets reacted? the connected to stabilize the euro again. brussels as saying that will not be happening. if the private bondholders have lost apple but there are road, that is technically a default by the debt for. it does that mean anything. -- a default by the debtor. nothing is going to make the markets go negative on this deal. >> let's get a check on the markets right now. in frankfurt, tehe dax and little changed on the day. investors are largely waiting for some u.s. jobs data came in -- coming in later this hour. it has been descr

the international swaps and derivatives association is the arbiter of complex financial derivatives and it's declaration will likely trigger big payouts. the move impacts credit default swaps, essentially insurance on bonds. the trade group declared a credit event after greece forced all bondholders to take losses, if they wanted to or not. so now, owners of those less valuable bonds could collect more than $3 billion if they owned credit default swaps. the move wasn't a surprise. just consider the financial sector, which has been so much in focus with the european worries was the best performing stock sector today. starbucks shares jumped to a new high up 3%. the buying came after it released plans to sell a single- serve brewer. that single serve market comes with bigger margins. and the big player in that market fell hard. green mountain coffee roasters dropped 16% with shares settling at their lowest price since early february. the stock rallied back them after a very strong quarter, thanks to its single serve coffee business-- a business that now has a new competitor: starbucks. th

a group called the international swaps and derivatives association, the group for derivatives that are not traded on exchanges, decided greece's new law forcing private lenders to accept losses on their bonds does not trigger pay-outs covering what is essentially insurance on those government bonds. banking stocks also helped the dow industrials. j.p. morgan rallied almost 3%. bank of america was up almost 2%. today's improving figures on fewer americans filing for first-time unemployment benefits wasn't necessarily behind a big jump in monster worldwide, the online jobs site. instead, the c.e.o. says he's considering strategic alternatives. that's wall-street speak for the company may be for sale. shares shot up 15% on very heavy volume. the company did not elaborate on the c.e.o.'s comments, but they come as the share price is half what it was one year ago. competition from facebook and linkedin has hurt its traditional market. another company suffering from tough competition-- blackberry device maker research in motion. shares sank 4% after an analyst speculated the company will iss

the international swaps and derivatives association. and they've been asked to, as we understand it, they've been asked to 0 decide whether or not a credit the event has taken place in greece, if they eventually decide that, of course, they will trigger cds. they have a meeting this morning to decide whether they should discuss whether a credit event is taking place. cnbc has confirmed that a second question has been asked of them. so those deliberations are going to take place. it's very con can fusing, just to explain what isda is and why they're deciding on this, they're a global financial trade association. they have basically 815 institutions for 58 kcountries and six continents and it it's a range of derivatives, international banks, asset managers, energy commodity firms. they basically -- one of them get together and they sort of decide whether they, "a," first of all, want to answer the question and then if they want to answer the question when they're going to do it be a then down the road decide whether a credit event is takin

international monetary fund will contribute to the bailout. imf managing director christine lagarde has said she will back a $36.7 billion loan. but the drama in greece certainly isn't over. both moody's and the international swaps and derivatives association, isda, you've seen that a lot in the headlines of late, they say greece has technically defaulted by effect ofly forcing bond holders to take part of in its debt restructuring deal. let's take a look at how this is playing out on the stock markets. we are seeing more or less what we expected, perhaps more negative than we thought. off by a third of a percent, quarter percent in the case of the dax. the broad picture really is pretty much the same. we were expecting flattish markets. i suspect a lot of this has to do with what has been going on in asia. we'll have more on that from andrew in a moment. we'll have more analysis on where the trading action will be going with our market analyst michael houston. andrew, i think asia isy your big story. >> i think you're right, it is today's story. surprising given the fact we had such strong job numbers on friday out of the u.s. that we have this sort of reaction in the asia today. usually we'd expect to see strong green arrows across the b

we heard comments from the isda, the international swaps and derivatives association last week that thereasn't a credit event that justified credit default swaps the insurance on greek bonds being paid out but if events don't go well for greece this week, it's likely that $3 billion will be paid out to credit default swaps holders, the insurance on these bonds. and greece will be defaulting on its sovereign debt. >> let me be absolutely clear about this, so i understand and the viewers understand. what you're really saying is there's a linkage between whether this whole deal with greece is formally designated a credit event and whether the psi, the deal goes through this week. in other words, unless the $3.2 billion or whatever it is, get paid out, we won't get a deal this week, is that what you're saying more or less? >> pretty much. greece requires voluntary takeup of the new bonds and voluntary defaulting or giving up of the old bonds. that figure has to come in over 75% of existing bond holders. it's likely the investment banks will agree to it because they're the ones also holding th

the international swaps and derivatives association has been saying no so called credit event has actually taken place. credit event usually means default. many would beg to differ with that assessment. however, if there hasn't opinion a credit event as yet, the delaying of a bailout decision for another few weeks to come will say that a default could be imminent. the problem is being nudged aside as eu leaders consider the macro economic issues. they focus away from austerity and look at growth. charles is live in brussels for a look at these talks as they continue. charles, we should talk about what happens next after this. we'll do that in just a minute's time, but never mind the crisis surrounding greece and its deficits. it sounds as though the broader economic crisis really has been putting some of these leaders under pressure and you'd been speaking to them, i gather? >> reporter: absolutely, but i think let me just bring you right up to date with what's been going on in the last hour or so, nina. we've seen the signature by all the parties, it's being fed in to us here live in the

the international swaps and derivatives association will meet a few hours from now here in london to determine whether the deal constitutes a so-called credit event. if they rule that it does, it will trigger payouts to holders of greek default swaps on greek debt. the failure to do that would have worried people. the prospect of a credit event might have scared investors a few months ago but most have since priced it in. the fact that a disorderly default has for now been avoided, phew, is what they're saying. this news was coming out so to some extent it was starting to the price mice last night. here's how they're looking now with athens leading the pack up by .5%. paris cac and ftse basically hanging in there. they're on the flat line. the other news, the u.s. job numbers are quite rosie. we'll have to wait to see for a few hours. anyway, in terms of greece, things have certainly turned sunnier in the global equity markets. monday and tuesday were negative sessions. can this new positive move be sustained? let's get some perspective from will heddin, a sales trader. will, presuma

again, folks, breaking news, international swaps and derivatives association has a 15-member committee got together. they decided, yep, it's a credit event. greece has officially defaulted on part of its debt. i tweeted it out i don't know late '09 that this was going to happen. not tooting the own horn, but i think everybody out there knew this was going to happen. michelle caruso-cabrera is on the telephone, i believe, with us from athens. i know a lot of people expected this to happen. some people said it wouldn't, michelle, here we go. we got a greek default. >> yeah. as expected. and i have to tell you, brian, a lot of people didn't think it would happen back in 2009. remember all the european leaders who said there will be no default in the eurozone? you're absolutely right. the moment has come. it is a exactly right, the time has come, it is a new low point for the european union. this was expected. one thing to keep in mind, the way credit default swaps work, they get paid out over time. so a lot of this may be already in the market. for example, one emerging market credit mana

out on the wires this morning, markets had been waiting for a decision from the international swaps and derivatives associationr greece's bond restructuring constitutes a so-called credit event. that ruling is just in from the isda they say there is no credit event for the greek cdss because of what happened with the structuring. there was an expectation it would be declared a credit event and that's why some of the cost of greek bonds for ensuring some of them had been creeping higher. the ruling comes out this is not something that triggered a credit event. >> amazing. >> i think a lot of people didn't think it was. >> it wasn't roll tear. >> 20 cents on the dollar, not -- >> you knew they were trying to right this whole thing around. >> see no evil, near evil. >> the other 20% will be forced into this not voluntary but the ruling is this is not officially something that's triggered. >> you can appeal, it's a 15-member panel, it's closed door no, transcript, no nothing. >> i think people were worried if it were declared is the money there, worried about another -- so we're afraid. why pay any money for the u

the major averages ended off session highs after the international association of swaps and derivatives declared greece officially in default. the market finishing up about 18 points. the default widely expected. isda saying greece triggered the payment on default insurance contracts by using legislation that forces losses on all private creditors. we'll go live to athens and give you the impact on your money coming up. meanwhile, take a look at the numbers, the dow jones industrial average, as strong as 65 points earlier today. 12,924. nasdaq, the big winner, has been the big winner year-to-date, about 18 points higher at 2988. the s&p 500 tonight up five points, at 1370. bob pisani is on the floor of the nyse right now. >> there's three themes that the market has been laying off of. all three got a little commentary today. let's put up the key points. the nonform payrolls push in a little bit. well, better than expected. in general. and the revision in january to the upside. that's a plus here. soft landing in china here. we've got economic data that even though china is slowing, it's

was the introduction of credit default protocols, developed the international swaps, derivatives association, developed a protocol on swaps and wound up being triple-a -- banks could gain -- traders could gain the bonus systems. so, they're complicated mechanisms that led those cdos to drive demand to the worst sub prime and extend the market so it was financial innovation gone ban. dodd-frank doesn't address the credit defaults market. there are provisions regarding repos, which-under how bank balance sheets -- those look to be able to be gutted. we don't really know yet. a lot of the dodd-frank is still in place. then the other hope for dodd-frank is that banks, when they get sick in theory, the feds and thefy dic can take them down in a more orderly manner. no one has shut down a major bank trading operation cleanly. at some point you have to stop the music, shut down the trading positions and value them. and no one wants to be exposed to that. if you're a big hedge fund or a big trader, you don't want to have your positions frozen. so the notion you can have a bank that people think is in trouble and say, we're going to h