This analysis of Bank of International Settlements data (here) tells a tale of European and US financial institutions behaving badly. The former obviously have huge exposure to European debt, while the latter have appear to have sold default insurance (how much was CDS) to protect those European institutions from default risk. PIG defaults while painful for European institutions will be cushioned by the insurance they receive from US institutions. In other words, the former would like to get default over and done with while the latter would rather push the defaults out in time till the implied puts expire. Fascinating.