TEPCO Shares Suspended After Nationalization Report; Billions Of Capital In Flux

Tyler Durden's picture

As reported earlier on Zero Hedge, the next step for TEPCO is most likely nationalization. While this is likely great for bondholders (if an American bailout model is consumed where there is no creditor impairment), it is not that hot for shareholders, who may lose most/all of their investment. Not surprisingly, we have just heard from Reuters that TEPCO shares are now suspended following the earlier nationalization reports: "Tokyo Electric shares were untraded due to a glut
of sell orders at 626 yen, down 10 percent from Monday's close. The
stock has lost 70 percent since the earthquake and tsunami.
And so, the rules change in the middle of the game once again. Only this time it was visible from a mile away. In the meantime, those who are long TEPCO puts may experience a Chinese reverse-merger fraud moment, as the stock gets a T-12 halt and reopens sometime in 3 years on the Pink Sheets. And, incidentally, those who are long are some of the biggest financial entities in Japan including  Dai Ichi Life Insurance, Nippon Life Insurance, Tokyo Metropolitan, Mizuho, Sumitomo, Bank of Tokyo.

And the main holders who may soon be looking at a big fat doughnut.

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Monkey Craig's picture

Collateral damage. I'm watching the financial sector in Japan, plus the city of Tokyo. If real estate values drop, then we might see major drama.

Nobody special's picture

Pretty frickin obvious if you ask me.  They're stock is going to be negative based on their success rate.  Who will fight this mess then?  The only way to keep TEPCO from outright collapse is nationalization.

Trimmed Hedge's picture

3 years is a long time to wait to BTFD....

dark pools of soros's picture

They just need to rent Paulson for his act in their congress for a full bailout

Dr. Porkchop's picture

Hank! Dust off the suicide vest and call Timmah..  they need you in Japan!!

Howard_Beale's picture

Hank just needs his kneepads.

f16hoser's picture

GEEEZZZZZ, I just had a visulization of Hank going down on Pelosi for 900 Billion. How do you say TARP in Japanese?


All kidding aside, my prayers to the Japanese people.

chump666's picture

Share meltdown...that crazy Japan govt nationalise, they will have to repatriate like crazy. 


BigJim's picture

And, incidentally, those who are long are some of the biggest financial entities in Japan including  Dai Ichi Life Insurance, Nippon Life Insurance, Tokyo Metropolitan, Mizuho, Sumitomo, Bank of Tokyo.

So what? They'll be treated as secured creditors.

taraxias's picture


TBTF, they have been for 20 years now, why would anything change now.

Id fight Gandhi's picture

Tepco execs home sick with a bailout.

Cdad's picture


I tip my hat, man.  You are the one guy who, day in and day, out paints the clearest picture of the disease running wild through our new, fake financial world...moral hazard.

Even the least informed, Dancing with the Stars watching, Average Joe American understands this intuitively.  But for some reason, Washington DC, Europe, and Japan simply have no clue how their actions destroy market credibility.  And as little as they know about moral hazard, they know even less about the consequences of maintaining this plague.

But there you are, plugging away, with each opportunity, painting the clearest picture of it.  And I thank you for it.

It is now official...post earthquake, Japan is now entirely FUBAR.



FortyTwoIsTheAnswer's picture

It's interesting that Cdad and other people make the assumption that our leaders don't understand the results of their actions, re: "..have no clue how their actions destroy market credibility". They know exactly what they are doing and which masters they are serving.


Time to wake up to the fact that there is a reason to how/why things happen. It's not an accident and it's not because people are clueless.

CU1981's picture

Chaos - by definition: is uncontrollable.

Cdad's picture

First off, anyone with a name as stupid as FortyTwoIsTheAnswer is suspect...but I'll give you one chance.

I did not use the word "accident."  You inserted that word.  And while I did use the word "clueless", the important context came within the following sentence which drew attention to the consequences of continuing to bail out the losers.  The difference between us?  Timeframe.

Yes, you see what the bankers who continue to rape the system fail to understand is...revolution.  That is what America is heading for, in my opinion.  The normal channels are clogged with short sighted criminal syndicate Wall Street bankers...but if you had ever even read two of my posts...you would have known this, of course.

So ball in your court.  Go ahead and prove to everyone here that you are a Chinese communist fuckstick working for sticky rice balls, tasked with trying to fuck up everything that anyone says...or prove me wrong.  Either way.

ExpendableOne's picture

42 IS the answer.  You are obviously not a fan of Douglas Adams.  When TSHTF, don't forget your towell or peril sinsitive glasses.

Fearless Rick's picture

Cdad, I don't think there's going to be a revolution, at least not the bloody sort. Rather, I believe what I see happening day in and day out on the streets and in the stores. Any opportunity to cheat the system is taken by small businesses sick and tired of paying all the bills and keeping nothing for themselves.

Cash is being stripped out by plumbers, restaurants, small retailers, landscapers, etc. who simply cannot pay all their bills and their taxes. It's just too much, so the logical thing to do is to stiff the easiest one - the tax man, and it's done mostly by underreporting of income, as has been done for ages.

During the period of Prohibition, the underground economy was larger than the "official" economy. Govt. didn't have control and it's about to lose it again. The American people aren't the brightest bulbs, but some are, and they are screwing the feds and the states every chance they get.

tom a taxpayer's picture

Cdad - I wonder if Tyler and Marla could dance on Dancing with the Stars, maybe that could open up a whole new audience for Zerohedge and its educational mission.

Cdad's picture

I hear ya Tom...and maybe so.  I have never seen the show so I cannot actually say.

However, I think what Tyler and Marla need to work on right now is weeding out dipshits [based on the geography of their IPs] so that the current audience of ZH [the non communists members] could effectively communicate and thus be better in a position to assist in advancing the ZH cause...but that is just me and two fucking giant martinis talking...so go ahead and dismiss me now if you likee.

Judge Judy Scheinlok's picture

GDP = C + I + G + Net Exports!

Sqworl's picture

Vote for Petra Nencova on DWS by calling 800-868-3404..thank you..

ragedmaximus's picture

 namechange to   TAPPEDCO

etudiant's picture

A country of old people invested in TEPCO as a safe source of income in retirement. Poor Japanese.

bob_dabolina's picture

Who is going to nationalize Japan?

Or are 5 reactors melting down not that big of a deal on a relatively small island?

taraxias's picture


It's owners. The USA.

Let's face it, Japan has been nothing more than a US protectorate since the end of WWII. Willingly too.

P.S. Now, please don't ask me who's going to nationalize the US. The answer to that question is obvious if your ears are good enough to pick up that humming sound of the ChairSatan's heidelbergs.

tbd108's picture

12 million starved to death mainly from wolfpack style submarine warfare (just like those nasty Germans!). Millions more dead from firebombing and a couple doses of nuclear style death. Roman Empire style mass terrorism so they stop getting uppity and thinking they are qualified to run their own affairs (not to mention horning in on the USA and Great Britain milking China dry which I mention in case you think I am actually favoring the Japanese). I bet that you'd be more than a little "willing" if you went through that.

chump666's picture

straight down short on the AUD to the 50 or 100 mA

RobotTrader's picture

No worries.  Any fund with a position in TEPCO will simply sell whatever crumbs are left, then take that money, lever it up with a Bank of America Prime Brokerage margin account, and find the next "LULU" or "PCLN" in order to Riverboat their way back to "even".

Any wonder why the more black swans emerge, the crazy cult stocks go up even higher?

Virtually everybody who has had a big loss on something like TEPCO is now more determined to turn some of his portfolio over to a 19-year old, Monster Energy-swilling, mo-mo trader with specific instructions:

"You have 90 days to use this money to gun some mo-mo stocks and get my portfolio caught up.  If you fail, then you are out of a job.  If you are successful, then you get a $25k bonus."


Lots of guys making big bets on small screamers like Alcatel-Lucent

bob_dabolina's picture

I've banged 3 of those chicks...

They're not much to brag about.

BigJim's picture

I'm sure they speak very highly of you, Bob ;)

bob_dabolina's picture

They were cheap even by Vegas standards.

duncecap rack's picture

While we are on the topic of hot chicks. Where the hell is money mcbags these days? With the world so fucked up I could use a good laugh.

Howard_Beale's picture

Max Keiser is on Al Jazeera right now talking about bailouts and the European situation...they gave him a lot of face time.

tom a taxpayer's picture

This is the time when the switch is flipped from privatizing gain to socializing losses.

Howard_Beale's picture

You mean it stopped since the first Maiden Lane was established for Bear in 2008? It's been going three years straight without a hitch all over the globe.

Urban Redneck's picture

Wash, rinse, repeat

Maiden Lane has existed on licensed banks' balance sheets since before the turn of the century, only the suffix changes.

The story remains the same. 


suteibu's picture

Nikkei spins it another way.

Tepco Ask-Only On Plutonium Leak Jitters

Shares in Tokyo Electric Power Co. (9501) opened ask-only Tuesday, after the utility said Monday that plutonium was detected in soil on the premises of the Fukushima Daiichi nuclear plant.

Investors are selling the stock on concern that the highly poisonous substance came from the damaged reactors.

They added this at the end.

A local media report before the bell said sources close to the government suggested Tepco may be nationalized to help the firm deal with the massive financial burden it will bear over compensation for those affected by the plant troubles.

Investors responded negatively to the report.

chump666's picture

apparently at 5 different locations..indicating a meltdown is happening or has happened

BigJim's picture

That's a good point! How do we KNOW that all that radiation around the plant actually came from the reactors, rather than (say) just 'natural' radiation washed ashore with the Tsunami? And it filled up all those weird toruses, and is only NOW beginning to leak out?

Paging Trav, paging Trav....

Howard_Beale's picture

Please don't page him. Hopefully he took his lithium and is resting in his mother's basement.

Judge Judy Scheinlok's picture

That's what I do after my spanking.