Umm… When your bartender cuts you off…

Maybe it’s time to go to another bar.

No more bets for Greek euro exit

Athens News

10 May 2012

Want a flutter on Greece leaving the euro zone? It may already be too late. A surge in bets has forced Britain’s biggest bookmakers William Hill Plc and Ladbrokes Plc to suspend betting on the odds of Greece dropping out.

“It is safer for us to suspend betting than to keep cutting the odds,” a spokesman for Ladbrokes said. “We have been slashing the odds repeatedly over the last few days.”

Ladbrokes is still taking bets on the Greek stock market losing more than 25 percent of its value in a single day’s trading by the end of 2012.

And if you fear Greece is just the beginning of the end for the European single currency, Ladbrokes is offering odds on the euro ceasing to exist by the end of 2012, which would make punters 33 times their original stake.

Ladbrokes is offering odds of 5/6 that the euro will cease to exist by the end of 2015 and 4/1 on two or more states to leave the euro by the end of the year.

William Hill, however, has closed betting on the euro still being in existence by the end of 2015 – a possibility it sees as closely linked to what is happening in Greece – with the latest odds before suspension at 4/6 in favour and 11/10 against.

(h/t Calculated Risk)

(h/t Matt Taibbi, 991 views)

Jamie’s Cryin: Dimon, J.P. Morgan Chase Lose $2 Billion

Matt Taibbi, Rolling Stone

POSTED: May 11, 10:48 AM ET

This incident is certain to reignite the debate about Dodd-Frank and may undermine the broad effort to roll back the bill, which we wrote about in the latest issue of the magazine. Staffers on the Hill started mobilizing the instant the Chase news hit the airwaves yesterday, and you can bet we’ll hear more debate in the next few months about not only the Volcker Rule but the Lincoln Rule, which was designed to wall off risky swaps from the federally-insured side of these banks. I’ve heard from all sides today, with some thinking the Chase trade was Dodd-Frank compliant, and others saying it probably violated both the Volcker and the Lincoln rules.

Either way, the incident underscored the basic problem. If J.P. Morgan Chase wants to act like a crazed cowboy hedge fund and make wild exacta bets on the derivatives market, they should be welcome to do so. But they shouldn’t get to do it with cheap cash from the Fed’s discount window, and they shouldn’t get to do it with money from the federally-insured bank accounts of teachers, firemen and other such real people. It’s a simple concept: you either get to be a bank, or you get to be a casino. But you can’t be both. If we don’t have rules to enforce that concept, we ought to get some.


China’s Big Banks Look More Like Paper Tigers

By Jonathan Weil, Bloomberg News

May 10, 2012 7:00 PM ET

After spending time combing through the financial reports of China’s biggest publicly traded, state- owned banks, I now understand what Jim Chanos, the famous short- seller, means when he keeps saying they are “built on quicksand.” He’s definitely on to something.

In a Bloomberg Television interview last week, Chanos said “the Chinese banks ought to be sending a thank-you note to Greece and Spain every month for keeping them out of the limelight.” It’s anyone’s guess how long they will stay this way.


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