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Here is the short easy to understand story:
In the beginning of 2013,
Blackstone affiliate GSO Capital Partners purchased debt and credit default
swaps in a company called Codere SA, a listed Spanish company that operates
betting parlors, online gambling sites and other gaming activities. GSO and
another firm later purchased a €100 bank loan (via secondary markets)
that Codere already had on the books, and then convinced Codere to delay
repayment on the debt related to the aforementioned credit default swaps by
giving them a loan of 100 Million dollars with the terms that they would pay
their other loan late. Codere paid two days late which triggered the CDS,
resulting in upwards of $18.7 million in profit for GSO. Not only did this
story not get covered by local media or any financial news, it is also legal!
This is just one of the many stories of corrupt Wall Street, and their shady
dealings. So in short a company essentially paid another company to not pay
their loan on time so that they could profit from the insurance company when
the loan was not paid on time. Doesn’t this make you wonder what else the media
hides from you? What is really going on in this country, in Wall Street in our government?
Think about this story next time you watch the news or read the paper, and I
hope you realize what a joke it is.
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