EU Probes Banks Over CDS

The European Union set in motion antitrust probes Friday into giant U.S. and European banking institutions whose fine-slicing of the insurance market was blamed by debt-ridden eurozone states for forcing them into bailouts. The investigation targets CDS, derivative financial products traded between financial institutions or investors initially designed to protect investors in case a company or state they have invested in defaults on payments, but also used today in speculative investment portfolios. These products have helped push up yields when trading govt bonds issued by Greece and other struggling European states. – AFP

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