Greek bond holders are going to be required to take a 70% loss on their holdings. So far, however, the International Swaps and Derivatives Association has said that the Greek bailout will NOT trigger credit default swap payments.
As I explained a couple of days ago, AIG will be exposed in the event of a ruling in favor of payouts.
Since AIG is insolvent, a ruling in favor of payouts would constitute another back-door bailout by the US government via AIG contracts.
So, from my perspective, the ruling against a payout is good news, although the article suggests the decision is not yet firm.
Officials Rule No Payout on Greek Swaps. Peter Eavis. New York Times March 2 2012
[excerpted] "The International Swaps and Derivatives Association said on Thursday that based on current evidence the Greek bailout would not prompt payments on the credit-default swaps linked to the country’s bonds.
"But the organization warned that the situation in Greece was “still evolving” and such payouts might be necessary in the future “as further facts come to light.”