It's the implementation of CAC's when I think CDS will be triggered but interested to see that subordination to the ECB seems to be ok?

The point is that the way they've done it, it's technically not subordination even though in effect it is. They're treating all holders of ISIN x, y and z equally for the restructuring, so there's no subordination. However the ECB's holdings of x,y,z have turned into holdings of very similar bonds with ISIN a,b,c and so they are not subject to the swap. Whatever you think of it morally, it doesn't tick the ISDA boxes.

Off-topic, but I think attention will soon be turning to the pain in Spain. Rajoy announced that they missed their deficit target of 6%, instead it's 8.5% of GDP. That means they need to more than double the cuts they announced a few months ago, which will make for ... interesting politics. They are also forecasting 2012 GDP down 1.7%, worse than previous estimates.