The Noose Tightens For Goldman, As Merkel Calls Greek Swaps A "Scandal"

angela merkel joe biden yulia ukraine

Speaking at a conference in Germany, Angela Merkel made comments that should make Goldman Sachs (GS) nervous.

According to Bloomberg, she called the debt-disguising derivatives a “scandal,” and she specifically slammed the banks that arranged them (though she didn’t call out Goldman by name).

Now you can debate whether Goldman really did anything wrong or illegal under EU rules. That’s kind of irrelevent here.

It’s all about mood. The leaders of “rich” Europe are eager to save face, especially because they’re going to have to explain a Greece bailout to angry voters.

Simon Johnson has suggested that Germany could face some kind of Euro blacklist if this blows up. Comments like this would seem to heighten that possibility.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.