With $30 Billion In Structuring Fees On The Table, Moody's Calls For Larger EFSF Even As WSJ Reports It May Be DOA

"Even as the realization that the "EFSF as an insurance policy" is dead on arrival, just as Zero Hedge predicted following some simplistic math exercises yesterday, is spreading following a report just out by the WSJ that "EU lawyers have rejected direct EFSF guarantees", the multi-trillion CDO-insurance hybrid has received an endorsement from a most surprising source: Moody's which "called for increasing by as much as fivefold the firepower of the euro area’s temporary rescue fund, the European Financial stability Facility. A 2 trillion-euro ($2.8 trillion) EFSF “is not an unfair figure. What is needed is that there are resources to cover the entire area including Spain and Italy." Well, when one considers that there are about $30 billion in structuring fees on the table, a lot of it payable to the rating agencies, and quite a bit due to the EU's financial advisor (which has remained very stealthy through this point: we wonder just who is advising the EU and Eurozone on the daily changes to the bailout proposals - is it Goldman Sachs? BNP? SocGen? Inquiring minds deserve to know), it is probably not that strange that Moody's will pull a 180 and now demand a far larger "rescue facility." After all, without one, not only will the rating agency make billions less in the current fiscal year, but it will have no excuses to not downgrade the countries in Europe's core whose fiscal situation is deteriorating with each passing day..."

at  http://www.zerohedge.com/news/30-billion-structuring-fees-table-moodys-calls-larger-efsf-even-wsj-reports-it-may-be-doa