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There's No Better Indicator That Someone Is Lying Than When They Do The Opposite Of What They Say: Enter BNP Paribas
As of late, I have been on a tear regarding the French banking system - having warned my paying subscribers at least a full quarter ago (and 50% in equity depreciation ago) that this was a house of cards ready to collapse. Well, now the chickens are coming home to roost and the sell side of Wall Street, the pop media, and the ratings agencies have all come around to this conclusion espoused in the BoomBustBllog archives, as was illustrated in the post As The French Bank Runs.... Of course, French bank management denies any and all financial and funding issues. As clearly ridiculed explained in This Is Why BoomBustBlog Is THE Place To Go For Hard Hitting Research: BoomBust BNP Parisbas?:
"Chief Executive Officer Frederic Oudea said in an interview with Bloomberg Television in New York that the bank’s exposure to European sovereign debt was “manageable” and that it could do without access to U.S. money-market funds.“For our bank, the exposure to sovereign debt is low, absolutely manageable,” Oudea said. “We have plenty of buffers of liquidity and we are adjusting to the reduction in the money- market fund exposure.”"
Note: For clarification, Oudea is the CEO of SocGen, but the the point remains as illustrated by a statement released by Bank of France governor Christophe Noyer, which said that French banks had no liquidity or solvency problems, and were recapitalizing.
Well, in the afore-linked piece, I published some choice tidbits from the Bank Run Liquidity Candidate Forensic Opinion - A full forensic note for professional and institutional subscribers (click here to subscribe), and otherwise known as BNP Paribas, First Thoughts, with interesting page titles such as the following...
Not even 24 hours later, what do we see in the pop financial media? BNP Paribas to Sell $95.4 Billion in Risk-Weighted Assets (CNBC) and BNP Paribas to Boost Capital Ratio, Cut U.S. Assets (Bloomberg).
(CNBC) France's top bank BNP Paribas announced a plan to sell 70 billion euros ($95.7 billion) of risk-weighted assets to help ease mounting investor fears about French bank leverage and funding, two days after smaller rival Societe Generale unveiled a similar plan.
So, who do you believe, bank CEOs or Reggie Middleton. Again borrowing from yesterday's post This Is Why BoomBustBlog Is THE Place To Go For Hard Hitting Research: BoomBust BNP Parisbas?, I offer a hint to those that may be in doubt by channeling my warnings of Bear Stearns in 2008, via Is this the Breaking of the Bear? (January 17, 2008) which I quote, "Bear Stearns is in Real trouble - Bear Stearns will soon be, if not already, in a fight for its life."
The forensic adjustments that led to a null economic book value in the case of Bear Stearns above are the same that need to be made to BNP Paribas, as illustrated from my post yesterday:
OK, I'll bite. Excactly how did BNP get to this €135 billion figure? Was it by using Lehman math? Methinks so, as clearly delineated in my resarch report on the very first page:
BNP_Paribus_First_Thoughts_4_Page_01
Of course, and eerily, like Alan Schwartz (Bear Stearns then CEO), BNP Paribas CEO denies any problems and actually says the bank is handling its issues (that they don't have) rather well. Let's channel 2008 again for a moment, shall we?
>
Hey, Big Wall Street Bank Execs Always Tell the Truth When They're in Trouble, RIIIIGHT????
Here's more of Alan Schwartz lying on TV in March of 2008
Like I said above, it's not as if upper management of these Wall Street banks would ever mislead us, RIGHT????
I query thee, why sell $96 billion dollars of assets when there is NO liquidity problem? When I was a child I would often question my rather disciplinarian father's contradictory actions. He would then reply in his gruff, deep, masculine voice, 'Boy, do as I say not as I do!" Is BNP Paribas CEO channeling both the elder Middleton and Alan Schwartz of Bear Stearns' fame simultaneously?
On a separate, yet related note: Moody's Downgrades Credit Agricole, SocGen Ratings. BoomBustBloggers, you can't say you didn't see this coming...
A step by step tutorial on exactly how it will happen....
- The Mechanics Behind Setting Up A Potential European Bank Run Trade and European Bank Run Trading Supplement
- What Happens When That Juggler Gets Clumsy?
- Let's Walk The Path Of A Potential Pan-European Bank Run, Then Construct Trades To Profit From Such
- The Anatomy Of A European Bank Run: Look At The Banking Situation BEFORE The Run Occurs!
- The Fuel Behind Institutional “Runs on the Bank” Burns Through Europe, Lehman-Style!
- Multiple Botched and Mismanaged Stress Test Have Created The Makings Of A Pan-European Bank Run
- France, As Most Susceptible To Contagion, Will See Its Banks Suffer
- Observations Of French Markets From A Trader's Perspective
- On Your Mark, Get Set, (Bank) Run! The D…
- ECB As European Lender Of Last Resort = Institutional Purveyor Of A Pan-European Ponzi Scheme
Again, I believe the next big thing, for when (not if, but when) European banks blow up, is the reverberation through American banks and how it WILL affect us stateside! Subscribers, be sure to be prepared. Puts are already quite costly, but there are other methods if you haven't taken your positions when the research was first released. For those who wish to subscribe, click here.
Contagion Forensic Review - Retail- advertisements -
So glad to see that Reggie has not been bought off and is still sounding the warnings.
He knows few will listen, but to those of us that do, we offer him BIG thanks for telling it like it IS, not for telling it like we want it to be.
And, I sure do feel secure knowing that the US banks (and government, we are into France too) are telling me they are able to "contain this contagion."
They said it before and we found it to be lies, anyone that believes this time has no one to blame but themselves.
oops, double
Reggie you are the man!
What drivel. disjointed comments, linked by pages of advertising, and charts, yet without a single sentence of substance. It's like reading Yellow Pages at random.
An now we have comments from the BNP executive staff...
tell'em Reggie!!
Tell Him! SHOW ME THE MONEY!!
and then he will get closer to the facts!
aint nothing in the World Free!
it ain't easy being a P.I.M.P. Reggie! You hang in there!
I tell ya' if only I would have known that offshoring my research to India would have born so much low hanging fruit I would have banged it out Bra'! Good Call!
Money.. Money.. Money.. Moooooonnnnneeeeeyyyy! http://www.youtube.com/watch?v=Ll3uipTO-4A Cash Money! Come On Ya'll!
Why are you describing your own post like that?
As soon as you talk about a sale of $96B you can market that down by half in terms of value because the buzzards that will scoop this up see it for what it is inflated value fire sale. Note how well Greece asset sales are going...not
Kinda like when you stated you were not short RIMM and then a few months later you called it one of your best shorts ever?
If you can't trust banks......who can you trust?
Gold and Smith & Wesson
Everything coming out of the financial sector is basically turning out to be DELIBERATE fucking LIES. Why on earth would anyone send their cash to Wall Street, the City, or some other fucking LIAR??? Until lying CEOs go to jail and get anally penetrated on a daily basis (sans lube), there will be no growth, only spin and manipulation.
Regie is the MAN. It annoys the hell out of me, because his posts are always quite self-congratulatory about how he has been right all along... but he has been pretty much right all along. Annoying.
Your the MAN Reggie .................
Like when Bazooka Hank said Fannie and Freddie were well capitalised just before they needed a massive bailout!