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TEPCO Shares Suspended After Nationalization Report; Billions Of Capital In Flux
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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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.
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.
3 years is a long time to wait to BTFD....
Nikkei no likey
Tora! Tora !Tora!
They just need to rent Paulson for his act in their congress for a full bailout
Hank! Dust off the suicide vest and call Timmah.. they need you in Japan!!
Hank just needs his kneepads.
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.
CARP? Or is it Koi?
???
wtf no Japanese text ?
Share meltdown...that crazy Japan govt nationalise, they will have to repatriate like crazy.
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.
++++
TBTF, they have been for 20 years now, why would anything change now.
Bonus time!
Tepco execs home sick with a bailout.
Tyler,
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.
Cdad
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.
Chaos - by definition: is uncontrollable.
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.
42 IS the answer. You are obviously not a fan of Douglas Adams. When TSHTF, don't forget your towell or peril sinsitive glasses.
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.
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.
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.
GDP = C + I + G + Net Exports!
Vote for Petra Nencova on DWS by calling 800-868-3404..thank you..
namechange to TAPPEDCO
No DedCo sounds better
NuKuFuKu?
A country of old people invested in TEPCO as a safe source of income in retirement. Poor Japanese.
Who is going to nationalize Japan?
Or are 5 reactors melting down not that big of a deal on a relatively small island?
Who?
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.
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.
straight down short on the AUD to the 50 or 100 mA
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."
LOL...
Lots of guys making big bets on small screamers like Alcatel-Lucent
I've banged 3 of those chicks...
They're not much to brag about.
I'm sure they speak very highly of you, Bob ;)
They were cheap even by Vegas standards.
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.
Goto: http://whengeniusprevailed.com/
For a super-sized McBags & Fries!
Max Keiser is on Al Jazeera right now talking about bailouts and the European situation...they gave him a lot of face time.
This is the time when the switch is flipped from privatizing gain to socializing losses.
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.
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.
Nikkei spins it another way.
Tepco Ask-Only On Plutonium Leak JittersShares 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.
apparently at 5 different locations..indicating a meltdown is happening or has happened
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....
Please don't page him. Hopefully he took his lithium and is resting in his mother's basement.
That's what I do after my spanking.
He must be at a mensa meeting. Haven't heard anything from him in a while.
Investors responded negatively to the report.
I believe that is scientifically known as 'in situ defecation'
Stock Boy takes a poop
Oh Great, a Tepco bailout! Another zombie retard corporation to add to Japans army of walking dead... is any diseased dinosaur allowed to die in Japan? ...any wonder why the Japs have had 20 years of economic stagnation??
Answers on a Postcard to: 'Add Tepco to the List' Campaign, Zombies R Us Dept., Ministry for the Walking Economic Dead, Japanese-Keynsian Govt, Tokyo, Postcode: NUKE US
i need Banzai to explain "the intricacies of the bow." Clearly "this is beyond the hello bow." Is it "the Emperor wishes to see you now bow" though? Or is there a "you wanna a piece of this!" bow?
Different meanings for the one being bowed to. Pretty much a "kiss my ass" to all those behind.
Speaking, of course, only about the politicians, bureaucrats, and zaibatsu.
This item was just added to the Banzai store at Zazzle:
Abunai! Maneki Neko kitty flipping the bird, wearing a gas mask and holding the TEPCO bag:
http://www.zazzle.com/abunai_watch_out_tshirt-235258325379541784
Sad. Funny. Strangely appropriate all at once.
Sorry - but at this stage I don't really give a shit about the status of TEPCO share holders. Fuck them and fuck their incompetently run investment.
INET, George Soros second Brenton Woods meeting in April!!!
Shock admission by author of doctrine
used by White House to justify attacks
--WND
Thye are calling in the tanks, russian tanks lol
http://rense.com/general93/tanks.htm
That's some eyebrow raising shit there
Who are the big construction and cement makers in Japan? As Jim Cramer put a buy on them yet?
Sorry, computer has been Fukushimaed.
Let the games (financial and other) begin, er, continue, er, feed back into a screaming crescendo of black banshee swans:
"On Monday, The power company scaled back its operation to cool the No. 2 reactor, injecting 7 tons per hour, reduced from 16. The reactor's temperature rose by more than 20 degrees Celsius."
Many of you have cold war fallout shelters hidden among neighboring homes. At one point building codes in some cities required them. Lead lined with filtered hand crank ventilation systems.
It might be a good time to talk to your local historians or librarians. Find out where the nearest ones are and make a reservation.
http://www.nuclead.com/leadproducts.html
What a dilemma Tepco has here. NHK says the 'trench' is within centimeters of overflowing so they've put Jersey walls and sandbags around the top but they are losing 9 tons per hour of cooling capacity from the reduced water input. The 7 tons is the evaporation rate. Only its not steady state since there is a leak someplace. Sounds like a decision for the president of Tepco to make only no one has seen him lately!
In addition to those insurance companies, the Development Bank of Japan is a major lender to Tepco and all utilities.
What's really interesting is that the DBJ was privatized several years ago. However, the government of Japan remains the only shareholder in the "private" bank.
That tree fell in the forest. They heard it
Somewhat OT...I had lunch with my father today to talk about my recent decision to relocate to Montana (from Orange County) and he says there's nothing to be worried about. He's lost half his net worth twice in the market and both times he's earned it back...So, that proves that everything is fine and I'm just acting like a lunatic...carry on.
I have to say one more thing...after lunch today, I'm absolutely convinced that most people just are not paying attention...
What part of mt you headed for?
Nobody should be shocked. This is just a further step along the trend toward governments everywhere controlling all aspects of the economy. At least this is open book nationalization and not the under the table kind like AIG, GM, C, BAC, BSC, LEH, MER
Major Firms With Large Tepco Shareholdings
Company Holdings (Ymn)
Maeda 5,648
Mitsubishi Electric 4,796
Furukawa Electric 3,362
Tokyo Energy & Systems 3,318
Japan Petroleum Exploration 3,241
JR East 2,891
Kajima 2,747
Shimizu 2,656
Mitsubishi Estate 2,612
Taisei 2,436
JR Tokai 2,115
Meidensha 1,697
Inpex 1,423
Fujikura 1,171
Not suspended.
TSE sets daily price limits for each stock, TEPCO limit today based on aY700 close last night is Y150, so will be limit down today at Y550.
Govt isn’t nationalizing TEPCO, Edano said at a news conference, in response to a Yomiuri article that the govt may buy a majority stake.
Yet.
Could this be the straw that breaks the camel's back? I mean, its not like they can take body blow after body blow and not puke at some point.
too big to puke
I hope Buffet was invested and get's his ass handed to him!!!!!!!!!!!
From WSJ
No problem, the Japanese will just pay for it with higher debt and taxes. Those companies will barely notice.
I love the language:
"powerful institutions that would be loath to see their shares wiped out."
That's like me telling the guy who's about to kick my ass for screwing his girlfriend, "I am loathe to having my teeth smashed by your burly fists."
Yeah, gonna leave a mark. Maybe more than one.
A scene soon to be repeated.
http://www.infiniteunknown.net/wp-content/uploads/2011/03/TEPCO-Director...
Great Interview of Jim Willie on this Japanese Crisis and the impacts it will have on gold and especially silver: http://www.contraryinvestorscafe.com/jim-willie-radio/