According to Bloomberg, Prime Minister George Papandreou is considering taking legal action against U.S. financial firms that might have contributed to the country’s debt crisis while hunting profits in the turmoil.
Bloomberg: “I wouldn’t rule out that this may be a recourse,” Papandreou said, in response to questions about the role of U.S. banks in the crisis, in an interview on CNN’s “Fareed Zakaria GPS.” The program is scheduled to air Sunday.
“Greece will look into the past and see how things went,” Papandreou said. “There are similar investigations going on in other countries and in the United States. This is where I think, yes, the financial sector, I hear the words fraud and lack of transparency. So yes, yes, there is great responsibility here.”
Will all due respect Mr. Papandreou, the U.S. banks or CDS market did not cause and are not responsible for Greece’s current debt crisis and its budget deficit which is more than four times higher than the limit set for the euro zone. It is the Greek government’s predominant incompetence, economic mismanagement, and its unprincipal ways of running the country that created the conditions for Greece to possibly default on its sovereign debt commitments.