European officials moved the proverbial can down the road, but not very far and there are bound to be unintended, though foreseeable consequences, of the new deal. The next immediate focus is on the private sector involvement (PSI) and the debt swap. Essentially, the IIF, representing the banks, accepted a 53.5% haircut on notional value and what appears to be about a 74% haircut on a net present value basis. It is not clear how much the IIF really represents the private sector. Reuters reports that the IIF's 32 members had "at least 44 bln euros in residual [Greek] holdings." This is about a quarter of the 200 bln ... (full story)