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chinese firm tells goldman where to go ..

  1. 24,765 Posts.
    Jim Sinclairs Commentary

    The Chinese have a different approach to handling the OTC derivative mess.

    They treat a spade as a spade. They execute, not make whole, banksters.

    UPDATE 1- Chinese firm says wont pay Goldman on options losses

    Tue Dec 29, 2009 5:56am EST 4:48am EST

    BEIJING, Dec 29 (Reuters) A small Chinese power generator on Tuesday rejected demands from a Goldman Sachs unit to pay for nearly $80 million lost on two oil hedging contracts, part of a long-running dispute over how China deals with derivatives losses.

    Goldman Sachs (GS.N) was one of the foreign banks, along with Citigroup (C.N), Merrill Lynch and Morgan Stanley (MS.N), blamed by the state assets watchdog for providing "extremely complicated" and difficult to understand derivatives products. [ID:nPEK242617]

    Shenzhen Nanshan Power (000037.SZ) (200037.SZ) said in a statement that it received several notices from J. Aron & Company, a trading subsidiary of Goldman Sachs (GS.N), for at least $79.96 million as compensation for terminating oil option contracts.

    "We will not accept the demand by J. Aron for all the losses and related interests," said Nanshan, in line with the stance it took last December.

    "We will try our best to negotiate with J. Aron and resolve the dispute peacefullybut the possibility of using a lawsuit can not be ruled out when talks fail," it added.

    From http://jsmineset.com/ with a link "more" to
    http://www.reuters.com/article/idUSSGE5BS09T20091229

    My comment:

    It looks like Chinese companies are not prepared to lose billions and billions of dollars to the banksters because of the banksters selling them "extremely complicated and difficult to understand derivatives products."

    But as for companies like AIG. Well, the banksters were paid 100 cents in the dollar with bail out money that went in one door of AIG and straight out the other door to the banksters.
 
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