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Failed Danish Bank Makes History With First Senior Bondholder/Depositor Impairments To The Tune Of 41% Of Total

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Tue, 02/08/2011 - 23:37 | 945280 LostWages
LostWages's picture

Will the JP Morgue have to pay out on CDS which big bondholders probably had?


Wed, 02/09/2011 - 01:10 | 945532 Founders Keeper
Founders Keeper's picture

[Will the JP Morgue have to pay out on CDS which big bondholders probably had?]---LostWages


Hard-hitting first post. Kudos, Wages.



Wed, 02/09/2011 - 04:59 | 945776 StychoKiller
StychoKiller's picture

"It's banking Jim, but not as we know it."

Wed, 02/09/2011 - 11:27 | 946325 tonyw
tonyw's picture

we come in peace

shoot to kill

Tue, 02/08/2011 - 23:37 | 945281 dark pools of soros
dark pools of soros's picture

you speak of the devil!!!

Tue, 02/08/2011 - 23:37 | 945282 traderjoe
traderjoe's picture

How big is the POMO tomorrow?

BTFD ...

in PM's...

Tue, 02/08/2011 - 23:39 | 945291 bugs_
bugs_'s picture

adds "Danish Impairment" to the ZH lexicon :-)

Wed, 02/09/2011 - 02:13 | 945638 ThirdCoastSurfer
ThirdCoastSurfer's picture

"Danish Impairment"! 

Tulips, Don Quixote and now "Danish Impairment with your coffee, sir?"

I also like "deposit haircuts". They sure assume a lot when they so loosely throw a term around like that without explaining to the shake-weight community what that means. 

Tue, 02/08/2011 - 23:42 | 945295 99er
Tue, 02/08/2011 - 23:49 | 945324 max2205
max2205's picture

Guess somebody picked the wrong day to go long DANISH bonds. Burp!

Tue, 02/08/2011 - 23:52 | 945332 Seasmoke
Seasmoke's picture

never liked danishes for breakfast

Wed, 02/09/2011 - 06:54 | 945823 taisen
taisen's picture

You know in Denmark they're called Vienna Bread...just FYI if anyone should care.

And not all depositors lose money. Only deposits above 100.000€
Finansiel stabilitet(financial stability)(who is not entirely like the FDIC),
was insuring unlimited deposits 'till october 31st 2010..everyone knows this, so the people that lost money on this were just downright stupid. If anyone should be surprised the departing CEO, three months ago, who has the sole responsibility for this, as he is the former head of CRE at Amagerbanken, granted himself a leaving bonus of 20mm DKK(approx. 3.6 mm $).....but who even cares about millions anymore

additionally all pensions is secured by the state ass (pun intended) well..

Wed, 02/09/2011 - 08:41 | 945899 Richard Whitney
Richard Whitney's picture

In the 18th century, Danish boys went to Vienna to apprentice to Viennese bakers. Those bakers used a certain technique of layering butter in between layers of dough, which produced a flaky delicious pastry. When those Danes went back to Denmark to ply their new trade, they called the product 'Vienna Bread'. Later, descendants of those Danes emigrated to America and became bakers here. Naturally, people here called that delicious pastry 'Danish', after the practioners. So it is no mistake that Americans call that pastry 'Danish'. Today, visiting Danes wonder why we call it a 'danish', but that is because they don't know their own history. BTW, those same pastries are known in Germany as 'kobenhageners'.

Tue, 02/08/2011 - 23:54 | 945340 lizzy36
lizzy36's picture

No this can't have happened. What about MAD?

The futures are still trading, the stock exchanges will open tomorrow. There will be a POMO tomorrow, a 10 yr auction.........hell the the sun may even come up.

You mean all this time MAD wasn't real? It was just a tool used by the Kleptocrats to extract tax payer money to cover bankers excess risk taking/losses.......shocked i tell you, shocked.

Wed, 02/09/2011 - 04:20 | 945761 M.B. Drapier
M.B. Drapier's picture

To be fair, the effect will be a bit more dramatic if all the insolvent banks in Ireland and then Spain follow suit.

Tue, 02/08/2011 - 23:55 | 945343 moneymutt
moneymutt's picture

this is how it shoudl be done...of course, socialist Denmark does this while center right US passes TARP proposed and promoted by W and continued by Obama.

The other socialist country Sweden dealt with their banking crisis in 90s much better also. Apparently they are socialist but not as corrupt as we are.

Wed, 02/09/2011 - 00:10 | 945394 dark pools of soros
dark pools of soros's picture

no no - we didn't just pass TARP blindly..  12 smart conservatives saw a huge bribe coming and did the Rahm crisis=jackpot math for an extra $130bil

Wed, 02/09/2011 - 04:16 | 945758 EscapeKey
EscapeKey's picture

Indeed. Scandinavian countries are always described as socialist (on Fox News, usually in a really derogatory fashion), yet they actually deal with banks the way they should.

The US isn't capitalist. It's an oligarchy, controlled by the bankers. And the Federal Reserve's real aim has nothing to do with the average consumer, it's a bailout machine for the wealthy.

/Biding my time before some naive, goalpost-moving moron comes sputtering about the Fed's mandate, and how they can print indefinitely, without repercussions. Oh, they seem to be preoccupied in the Peak Oil thread.

Wed, 02/09/2011 - 08:16 | 945872 RollOver
RollOver's picture

Definitions about what is socialism or not depends on the purpose of the arguments :-)

When the Swedish finance minister got the question about what he would do if a "too big to fail" bank went bust and asked for help he answered "of course I would help out, but they would have to hand over all equity in the bank to me while handing in the application for help". Basically, all shareholders would get a wipe and the taxpayers would get the possible proceeds from a future IPO.

Minor banks would not be able to apply for help at all, they would simply be put in bankruptcy like in this article. If there are anything of value in the bank left, help yourselves out, if not, tough luck.

Tue, 02/08/2011 - 23:56 | 945347 buzzsaw99
buzzsaw99's picture

At least the Danes know how a capitalist system is supposed to work.

Wed, 02/09/2011 - 00:48 | 945496 99er
99er's picture

Hey buzzsaw99...remember your comment earlier today about my ES chart being the most stupid thing you've ever seen (or something to that effect)? Check this out:


The target for this Wolfe Wave is 1300. Perhaps you could provide us with your analysis of the market before you start spewing your shit all over other people's efforts.

Wed, 02/09/2011 - 00:21 | 945429 Cursive
Cursive's picture

Another loser: depositors, who just happen to be pari passu with senior bondholders.

TD, are you implying that bank depositors somewhere will lose money at their bank?  That's impossible, right?  In the USSSA, all bank deposits are 100% safe and your pension/401(k) will be there when you need it.  Don't you go yelling fire in a crowded theater.

Wed, 02/09/2011 - 00:22 | 945435 digalert
digalert's picture

Can I interest you in some good bonds? real good ones?

Wed, 02/09/2011 - 00:34 | 945470 jmc8888
jmc8888's picture

Great Dane!

It's about fucking time.

Hopefully this gets outsourced.

Wed, 02/09/2011 - 01:02 | 945514 I Am The Unknow...
I Am The Unknown Comic's picture

There's fire in the theatre!  Everyone (especially senior debt holders) run for the exits!  It's the end of the financial system!  Tomorrow will see runs on banks worldwide, followed by massive bank bankruptcies, 99% unemployment, people starving and panic in the streets of London!  There will be martial law!  We better save the rest of the banks now before it's too late!

Oh, wait, but then there is Iceland.....

...and for the USA, there are local, regional and state banks....all of which would be flourishing right now had the TBTF RICO/Grand Larceny devils been allowed to fail and/or brought to justice.

Wed, 02/09/2011 - 04:58 | 945775 StychoKiller
StychoKiller's picture

Dogs living with cats! It's TEOTWAWKI!! :>D

Wed, 02/09/2011 - 09:03 | 945927 Henry Chinaski
Henry Chinaski's picture


Wed, 02/09/2011 - 01:25 | 945561 Founders Keeper
Founders Keeper's picture

Bondholders and depositors taking a 41% haircut? That's really...unusual. Hmmmm. 

Great article TD, but I expect we'll hear more "details" before long.


Wed, 02/09/2011 - 01:28 | 945568 tellsometruth
tellsometruth's picture

Q: What does Vallejo CA and Denmark have in common?

Wed, 02/09/2011 - 02:28 | 945656 topcallingtroll
topcallingtroll's picture

Goldman Sachs?
Synthetic cdo cubed?
Interest rate swaps with number one above?

Tell me. The suspense is killing me!

Wed, 02/09/2011 - 08:23 | 945875 BlackSea
BlackSea's picture

Is it the over-ripe herring smell?

Wed, 02/09/2011 - 09:43 | 946003 Hephasteus
Hephasteus's picture


Wed, 02/09/2011 - 02:10 | 945632 Ahmeexnal
Ahmeexnal's picture

OK, time for some Dan Quayle grammar lessons.


Tomatoe, not tomato

Potatoe, not potato

Zombie, not zombi

Wed, 02/09/2011 - 02:11 | 945635 Ahmeexnal
Ahmeexnal's picture

Oh....forgot one thing.

Did I mention....GLOBAL BANK RUN!!!!!!!!!

Wed, 02/09/2011 - 02:12 | 945637 Caviar Emptor
Caviar Emptor's picture

The international brotherhood of banksters decided to toss a member's entrails to the sharks in hope of appeasing the rabble. Better to do it in lil ole Denmark where the squawk factor will be negligible. 

Wed, 02/09/2011 - 02:45 | 945680 robertocarlos
robertocarlos's picture

Some of my Danish relatives are pretty well off. Oh well, at least we still have Tuborg.

Wed, 02/09/2011 - 03:01 | 945704 anonnn
anonnn's picture

Is pari passu * contagious?

*  1. at an equal pace. 2. in equal or like way, 3.Law without preference or priority.


Wed, 02/09/2011 - 03:08 | 945711 ak_khanna
ak_khanna's picture

Goldman Sachs, J.P.Morgan, Wells Fargo, Bank of America must not be on the list of bondholders .


Wed, 02/09/2011 - 03:47 | 945743 ebworthen
ebworthen's picture


Bondholders lose 41%?

Is that like maybe municipal bond holders having to eat some losses in order to be "saved" by the federal government?

"They'd never do it" you say.

Well, I bet a lot of GM and WaMu senior bondholders never thought they would get pennies on the dollar while the UAW and GM management got golden parachutes.


Wed, 02/09/2011 - 03:52 | 945746 The Axe
The Axe's picture

finally some reality

Wed, 02/09/2011 - 05:26 | 945779 virgilcaine
virgilcaine's picture

short haircuts are coming back in style..beards and long hair era over and his use of psychedelics, the only way to comprehend the Mkts lately.


Wed, 02/09/2011 - 05:59 | 945796 savagegoose
savagegoose's picture

you wanna see a run on USD, try making something like that law in usa.,

Wed, 02/09/2011 - 06:32 | 945810 Zero Govt
Zero Govt's picture

"Danish bank Amagerbanken .. just made history... The bank ...passed last year's European stress farce test... failed yesterday,"

Seriously who needs to blog or add any comment: this self-validating political-banking clown show says it all !!!

Wed, 02/09/2011 - 06:34 | 945814 EscapeKey
EscapeKey's picture

More like 'Amagergeddonbanken', am I right or am I right. ThanksIllBeHereAllNightTryTheFish.

Wed, 02/09/2011 - 07:02 | 945829 taisen
taisen's picture


btw its pronounced "Amar" if anyone is annoyed as I am when reading something i can't pronounce...

guess not

Wed, 02/09/2011 - 07:23 | 945847 EscapeKey
EscapeKey's picture

Det kommer an paa hvorfra i Danmark du er.

Wed, 02/09/2011 - 07:34 | 945858 uranian
uranian's picture

he's exaggerating the number of letters anyway, it's more of a guttural swallowing sound combined with a glottal stop. i used to teach english in copenhagen and even local children had trouble spelling danish, it's such a weird dialect. phonetic language teaching and danish, not a happy combination.

Wed, 02/09/2011 - 07:56 | 945863 taisen
taisen's picture

haha tænkte jo egentlig nok at amagergeddon måtte være udtænkt af en dansker.

Wed, 02/09/2011 - 08:44 | 945903 uranian
Wed, 02/09/2011 - 07:05 | 945832 Cash_is_Trash
Cash_is_Trash's picture

Nordic countries bitchezzz

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