Dawne notes

* Ackermann discusses haircuts for Greek bondholders as summit looms* EU leaders may call for deeper bondholder losses at Sunday summit (Adds details, comments, IIF)By John O’DonnellBRUSSELS, Oct 18 (Reuters) - The head of the Institute of International Finance bank lobby group has visited one of Europe’s top officials ahead of a crunch meeting of leaders, discussing the risks surrounding steeper losses for Greek bondholders, an EU diplomat said.IIF Chairman Josef Ackermann met Herman Van Rompuy, who will chair summits of EU and euro zone leaders on Sunday at which there could be a push for deeper losses or “haircuts” for owners of Greek bonds.”They discussed private sector participation, haircuts … and bank recapitalisation,” said the diplomat, who added that the sensitivity of banks was addressed. “Van Rompuy, as always, was listening.”The IIF represents banks that own Greek bonds and its backing is important to secure any restructuring of Greek debt.The IIF brokered a deal in July agreeing to write down the value of bank-owned Greek bonds by 21 percent. But politicians, including German Finance Minister Wolfgang Schaeuble, have since signalled the cuts may need to go deeper.A spokesman for the IIF declined to comment on any specific meeting but confirmed that Deutsche Bank (DBKGn.DE) chief Ackermann and Charles Dallara, the IIF’s managing director, are in Brussels and continued to have discussions with officials from the euro zone.Dallara said earlier this week that investors would only revisit the deal struck with euro zone governments in July if governments also tackled the broader crisis surrounding sovereign debt.He said that if leaders were to force deeper losses on bondholders than the 21 percent agreed, it could prompt a sell-off of country debt, destabilising the euro.

18

Oct. '11

UPDATE 1-Bank lobby meets top EU official ahead of summit

* Ackermann discusses haircuts for Greek bondholders as summit looms* EU leaders may call for deeper bondholder losses at Sunday summit (Adds details, comments, IIF)By John O’DonnellBRUSSELS, Oct 18 (Reuters) - The head of the Institute of International Finance bank lobby group has visited one of Europe’s top officials ahead of a crunch meeting of leaders, discussing the risks surrounding steeper losses for Greek bondholders, an EU diplomat said.IIF Chairman Josef Ackermann met Herman Van Rompuy, who will chair summits of EU and euro zone leaders on Sunday at which there could be a push for deeper losses or “haircuts” for owners of Greek bonds.”They discussed private sector participation, haircuts … and bank recapitalisation,” said the diplomat, who added that the sensitivity of banks was addressed. “Van Rompuy, as always, was listening.”The IIF represents banks that own Greek bonds and its backing is important to secure any restructuring of Greek debt.The IIF brokered a deal in July agreeing to write down the value of bank-owned Greek bonds by 21 percent. But politicians, including German Finance Minister Wolfgang Schaeuble, have since signalled the cuts may need to go deeper.A spokesman for the IIF declined to comment on any specific meeting but confirmed that Deutsche Bank (DBKGn.DE) chief Ackermann and Charles Dallara, the IIF’s managing director, are in Brussels and continued to have discussions with officials from the euro zone.Dallara said earlier this week that investors would only revisit the deal struck with euro zone governments in July if governments also tackled the broader crisis surrounding sovereign debt.He said that if leaders were to force deeper losses on bondholders than the 21 percent agreed, it could prompt a sell-off of country debt, destabilising the euro.

18

Oct. '11

UPDATE 1-Bank lobby meets top EU official ahead of summit

* Ackermann discusses haircuts for Greek bondholders as summit looms* EU leaders may call for deeper bondholder losses at Sunday summit (Adds details, comments, IIF)By John O’DonnellBRUSSELS, Oct 18 (Reuters) - The head of the Institute of International Finance bank lobby group has visited one of Europe’s top officials ahead of a crunch meeting of leaders, discussing the risks surrounding steeper losses for Greek bondholders, an EU diplomat said.IIF Chairman Josef Ackermann met Herman Van Rompuy, who will chair summits of EU and euro zone leaders on Sunday at which there could be a push for deeper losses or “haircuts” for owners of Greek bonds.”They discussed private sector participation, haircuts … and bank recapitalisation,” said the diplomat, who added that the sensitivity of banks was addressed. “Van Rompuy, as always, was listening.”The IIF represents banks that own Greek bonds and its backing is important to secure any restructuring of Greek debt.The IIF brokered a deal in July agreeing to write down the value of bank-owned Greek bonds by 21 percent. But politicians, including German Finance Minister Wolfgang Schaeuble, have since signalled the cuts may need to go deeper.A spokesman for the IIF declined to comment on any specific meeting but confirmed that Deutsche Bank (DBKGn.DE) chief Ackermann and Charles Dallara, the IIF’s managing director, are in Brussels and continued to have discussions with officials from the euro zone.Dallara said earlier this week that investors would only revisit the deal struck with euro zone governments in July if governments also tackled the broader crisis surrounding sovereign debt.He said that if leaders were to force deeper losses on bondholders than the 21 percent agreed, it could prompt a sell-off of country debt, destabilising the euro.