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Iceland CDS Payouts: ~$7 Billion

Bloomberg is spinning this as "even bigger than Lehman," but that seems backwards to me. Shouldn't it be "Lehman CDS payouts nearly as large as entire country meltdown CDS fallout" ?

The auction was the first of three being held this week to settle credit-default swaps after the Icelandic government seized its three biggest banks because they couldn't raise short-term funding. The cost to sellers of contracts linked to Landsbanki, Kaupthing Bank hf and Glitnir Banki hf's may be $7 billion, compared with the $5.2 billion for settling bankrupt Lehman Brothers Holdings Inc.

Landsbanki Swap Sellers to Pay $1.7 Billion to Honor Contracts [Bloomberg]