Bank Of Lynch Estimates TEPCO Losses Up To ¥10 Trillion, Believes Firm Is TBTF For Bond Impairments

Tyler Durden's picture

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CD's picture

Minor & not unexpected detail, in the grand scheme of things -- but unusual for IAEA to admit to problems:


IAEA worried about radiation in Japan village

VIENNA — Radiation levels recorded at a village outside the evacuation zone around the quake-striken Fukushima nuclear plant are above safe levels, the UN atomic watchdog said Wednesday.

The International Atomic Energy Agency said safe limits had been exceeded at Iitate village, 40 kilometres (25 miles) northwest of Fukushima, well outside the government-imposed 20 kilometre exclusion zone and the 30-kilometre "stay indoors" zone.



According to Elena Buglova, head of the IAEA's Incident and Emergency Centre, the reading in Iitate village was 2 megabecquerels per square metre. 

That was a "ratio about two times higher than levels" at which the agency recommends evacuations, she explained.

redpill's picture

Absolutely absurd that the evac zone is still only 20km given that the situation is out of control.


TraderMark's picture

Just make TEPCO a bank holding company under the Fed's wing.  Problem solved. 

redpill's picture

Luckily ¥10 Trillion isn't what it used to be.

Robot Traders Mom's picture

@ Tyler-I like Bank of Lynch, but can you start referring to them as Lynch America?

Dollar Bill Hiccup's picture

Sorry Mrs. Robo Mom, I missed your post before I posted below.

That's even funnier ...

plocequ1's picture

I am a Taxpayer. I will handle it.

RobotTrader's picture

Ah, big deal...

Another problem to be swept under the rug.

Bank of Japan will print the necessary trillions, perhaps quadrillions of yen to paper over this problem.

monkeyfaction's picture

Holy fuck. Bonds are not supposed to be risk free. If you own bonds in a company that has the potential to cause a nuclear disaster or an Irish bank that lent $1000000000000 dollars to a homeless person you are taking on some of that risk. This TBTF shit has gone too far.


ZackAttack's picture

The Debt Peonage system only works if the rule of bondholders is upheld at all costs. This is why Ireland going off-script is so dangerous to the banksters. They'd do a partial default, the apocalypse wouldn't occur, and everyone else would be emboldened.

For Japan, let me make a guess about how the script plays out:

- TEPCO's bondholders are made whole

- TEPCO's private liabilities go onto the Japanese government's balance sheet

- ONLY after that happens, Merrill calls for the Japanese government to undertake severe austerity measures.


oogs66's picture

Agreed! I don't understand the argument for saving bondholders! Power will continue regardless of bondholders losing - as they should!!!

PulauHantu29's picture

So what are Japan's choices to pay the Trillions of Yen to rebuild, repair, bail out, etc.?

They can print and buy bonds flooding their markets with Yen (as Ben and the EU CB did);


Dump some of the US Treasuries to raise money and pay for the damages.Both are inflationary and the second would be very bad for the USA and prob bring Ben to tears.

DNB-sore's picture

are we seeing a bit of a free market? Someone is going to billed, lets put it in a share in debt per capita

Dollar Bill Hiccup's picture

Bank of Lynch, now that is very very funny.

Or maybe it's what comes to mind, bankers and a lynch mob ...

Bruce Krasting's picture

10 T divided by 82 comes to $121 billion. That is a lot of money. It is chump change if this goes bad. I am taking the 'over' from BAML on this one. Sorry.

Dollar Bill Hiccup's picture

A lot of money would be the $1Tn that we've pissed away in the desert sands of Iraq.

Assuming $5Bn a plant, you could build 200 nuclear plants with the latest technology for $1Tn. That's enough electricity to convert the entire gas fueled passenger fleet to electric while still doubling nuclear's share of electricity production (assumes 142Bn gallons gas @ 5.2Bn KWh w/ electric efficiency 4x, for 1.3Bn KWh needed, versus 2.4Bn KWh generated by 200 new plants).

It could be done. The US Navy has reactors inside of ships! Containment vessels could be made that are impregnable. It could be fail safe. Instead, we have private companies driven by greed to cut corners and make more profit. Nuclear CDOs.

Your over may come out something like that same $1Tn.

onlooker's picture

UPS trucks lined up at Fort Knox loading titanium bars for shipment to Tepco for conversion to T Bills to convert to US dollars. Pemco opts for titanium bars instead of T Bills. Titanium risk off. US dollar to be halfsized to reduce paper costs.

FischerBlack's picture

Bank of Lynch America Countrywide

RoRoTrader's picture

And the NIkki runs up 300 points........who would have thought?

But, that is money printing and not unlike the tsunami in its power, speed and surprise to overwhelm completely, either.

Watch for the Nikki daily to clear the 9800 200 MA. If that happens then its 1500 for the S&P.

The FED wants to see ZH "get its mind right".

ragedmaximus's picture

 SOMEHOW SOMEWAY the AMERICAN TAXPAYER will surely pay for this also.