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UniCredit Reopens After Halt, Plummets

Tyler Durden's picture




 

Unicredit, which was halted briefly before after hitting its down limit, has reopened, and the investing public welcomes this by total dumpage. Stock down as much as 10.5%. Expect Consob to elevate up its naked short selling ban to a ban of all financial stock shorting.

 

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Mon, 07/11/2011 - 10:42 | 1443653 NoRestForTheWicked
NoRestForTheWicked's picture

I love the smell of a crash in the morning.

Mon, 07/11/2011 - 10:45 | 1443670 Fish Gone Bad
Fish Gone Bad's picture

I have a bag of popcorn at the ready!

Mon, 07/11/2011 - 10:53 | 1443720 Boston
Boston's picture

Popcorn: check

Treasuries: check

 

Now, I'm sitting back and enjoying the show!

 

Mon, 07/11/2011 - 11:28 | 1443981 The PolyCapitalist
The PolyCapitalist's picture

ECB attention on keeping contagion from spreading to Spain has left the Italian rearguard vulnerable and wide-open to speculative attack. Text book Too Big to Save so don't even bother trying. Spain was potentially salvageable and hence warranted defense, but if Italy buckled then perhaps there really never was anything that the ECB could do anyway?

http://www.polycapitalist.com/2011/07/has-ecb-left-italian-rearguard-wide.html 

Mon, 07/11/2011 - 10:46 | 1443678 Mountainview
Mountainview's picture

You remember Citi in 2008... It sounds and smells similarly !!!

Mon, 07/11/2011 - 12:02 | 1444159 SoNH80
SoNH80's picture

People forget, but the equity capitalization plunge of the TBTF banks in '08 really freaked counterparties out, it was both a symptom and contributing factor of their insolvency.

Mon, 07/11/2011 - 13:30 | 1444493 slaughterer
slaughterer's picture

Shorting the Italian banks has been uncomplicated until this weekend, when we ran into regulatory complications.  We are using our legal department to see if what the Italian stock market is trying to enforce against us is even legal.

Mon, 07/11/2011 - 10:42 | 1443655 schismjism
schismjism's picture

i sold my shorts and now all i have is my socks.

Mon, 07/11/2011 - 17:06 | 1445412 dust to dust
dust to dust's picture

 Hold on to your socks.

Mon, 07/11/2011 - 10:43 | 1443658 Cognitive Dissonance
Cognitive Dissonance's picture

I can't wait until the fun comes to America.

Wait a minute....................

Mon, 07/11/2011 - 10:43 | 1443660 sheeple
sheeple's picture

TIMBERRR [A term i learned from sinoforest's lol]

Mon, 07/11/2011 - 10:45 | 1443667 firstdivision
firstdivision's picture

Welcome to the Recovery bitches!

Mon, 07/11/2011 - 10:47 | 1443677 critical_mass_soon
critical_mass_soon's picture

prepare for depleating inventories at every bullion dealer accross the globe, as the rush for tangible assets hots up, assets with no counter party risk and plenty of intrinsic value!

 

kiss my ass flexible money supply! aka the ponzi of the last 100 years!

Mon, 07/11/2011 - 10:52 | 1443714 geminiRX
geminiRX's picture

Wait till zerohedge and bloggers such as us are deemed "financial terrorists"....for disseminating information (the truth) contrary to state propaganda (the lies).

Mon, 07/11/2011 - 11:06 | 1443820 JustPrintMoreDuh
JustPrintMoreDuh's picture

You are to report to the nearest re-education center at once.

Mon, 07/11/2011 - 10:47 | 1443683 Jim in MN
Jim in MN's picture

07-11 10:22: Deutsche Bank breaks support, next support is at $52.85

Who said Germans and Italians can't do anything together?

Mon, 07/11/2011 - 10:49 | 1443700 camoes
camoes's picture

Not cool man, forgot WW2?

Mon, 07/11/2011 - 11:00 | 1443779 Jim in MN
Jim in MN's picture

It all started with the Crimean War...

Mon, 07/11/2011 - 10:47 | 1443688 doomandbloom
doomandbloom's picture

why are the peasants not buying?

Mon, 07/11/2011 - 11:09 | 1443843 Gandalf6900
Gandalf6900's picture

 

don't worry I'm buying...woooooohoooooooooooooooooooooooooo

Mon, 07/11/2011 - 10:49 | 1443697 ZackAttack
ZackAttack's picture

Because, of course, banning stock shorts directly addresses the problem of bond yields.

Mon, 07/11/2011 - 10:50 | 1443705 walküre
walküre's picture

Short term bounce is probable.

Might be a good quick trade with tight stops.

Mon, 07/11/2011 - 10:51 | 1443712 oc
oc's picture

In other news, looks like TPTB  are really trying to defend silver 36 and gold 1550. Nice take down, nobody will notice. 

Mon, 07/11/2011 - 13:25 | 1444461 Jonas Parker
Jonas Parker's picture

And they'll keep trying, until the PM marked blows up in their faces... which could be any time now.

Mon, 07/11/2011 - 10:52 | 1443716 Sudden Debt
Sudden Debt's picture

It's not ethical to short stock like that!

...

WHOEHAHAHAHAHA!!

 

seriously... Sarkozy is going to go after you...

Mon, 07/11/2011 - 10:57 | 1443737 Gandalf6900
Gandalf6900's picture

 

this shit stinks

Mon, 07/11/2011 - 10:58 | 1443750 Gandalf6900
Gandalf6900's picture

 

and thats all I have to say about that

Mon, 07/11/2011 - 10:58 | 1443754 walküre
walküre's picture

Italy, Lybia, oil in Euro, CIA, "revolutions"....

The US is fucking around in the Middle East and North Africa BIG TIME.

It's always been that way. The US needs wars and rumors of wars to keep their ponzi going.

Low and behold anyone who dares to touch the "reserve" status of the US Dollar and starts to trade outside of the box.

What the EU leadership should do is expand the EU trading privileges across Northern Africa, send all US military out of Europe and move away from unfair global trading practices favored by US imperialism.

Mon, 07/11/2011 - 11:11 | 1443854 Hacksaw
Hacksaw's picture

So, now it's the USA's fault that the Euros shit in their nest and don't have enough Bounty to clean it up?

Bawhahahaha

It would shickle the tit out of me if you jackasses sent the terrible Americans packing.

Where's all that Euro arrogance this morning?

Mon, 07/11/2011 - 11:33 | 1444018 walküre
walküre's picture

Europe was doing fine, too fine. North Africa was about to accept Euros for oil.

Which is why the US had to instigate the North African "rebellions".

Euro arrogance? Laughable coming from a Yank. What are you going to do with all that military personnel when it comes back? More food stamps?

Mon, 07/11/2011 - 11:09 | 1443842 ThirdCoastSurfer
ThirdCoastSurfer's picture

Isn't the real problem with shorts in times of market volatility that they are a negative liquidity event because they post as a credit (in banking terms) to the market but the debit does not arrive until they are purchased back?

If I buy a stock from a broker the cash I provide them can be used by them (since a internal match is sought before any external and between brokers there are settlement dates), but, if I short a stock, this money becomes tied up and unavailable, right?  

Severe spikes in shorting leaves brokers in short term liquidity binds and by scaring shorts by increasing reporting requirements and the like it provides brokers and others with a buffer, right? 

Mon, 07/11/2011 - 11:16 | 1443894 oogs66
oogs66's picture

the real problem is that politicians don't understand the real problem.  shorts only work because the companies suck, you can't fix a company sucking by banning shorts...once the shorts are gone, company stock prices can go into freefall even faster as the short covering bid is gone.

Mon, 07/11/2011 - 11:44 | 1444066 ThirdCoastSurfer
ThirdCoastSurfer's picture

How can they not understand that? They epitomize the peter principal.  

Mon, 07/11/2011 - 11:22 | 1443929 Tartarus
Tartarus's picture

Some might feel tempted to think this is due to concerns about Italy itself, but I think this is as much about Greece as it is about Italy. Look a bit at the Greek bank presence in the Balkan Peninsula. A Greek default would inevitably mean Greek bank failures and those Greek banks are major players in several Eastern European countries. This creates a lot of potential for contagion and Italian banks would likely be the ones with the greatest exposure to it of all the big European countries.

Mon, 07/11/2011 - 11:27 | 1443960 Gandalf6900
Gandalf6900's picture

 

wrong, a Greek default would sink the German and French Banks and not the Italian ones which are for the most part exposed to their own countries debt

Tue, 07/12/2011 - 13:37 | 1448279 Tartarus
Tartarus's picture

You are talking about sovereign debt and that was clearly not what I was talking about. I am talking about the inevitable collapse of the Greek banking system and how that will will impact the Italian banking system more than those of other big European countries.

Mon, 07/11/2011 - 11:29 | 1443978 Gandalf6900
Gandalf6900's picture

 

 

Mon, 07/11/2011 - 16:45 | 1445323 57-71
57-71's picture

Methinks someone tossed herbicide on the green shoots.

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