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Lede Of The Day: "Spanish Lender Bankia Will Wipe Out 350,000 Shareholders"

Tyler Durden's picture





 

Been a while since we had some amusement out of the Bazooko Circus known as Europe, which for the past month has gone completely dormant, not because "it is fixed" but because, just like in Japan where the JPY has plunged on expectations of an action by the BOJ, so Europe has continued to benefit from the threat of the latest and greatest proposed ECB intervention: the OMT, which on one hand keeps the vigilantes in check, but on the other delays any painful reforms even as the underlying Spanish economy continues to deteriorate without any real structural reforms: something which a surge in rates would promptly precipitate (and once expectations turn to reality, it's all over: just see the recent QE3 and QE4 attempts by the Fed). So speaking of Spain, today's recap sentence of the day goes to Reuters' Julien Toyer with the following: "Spanish lender Bankia will wipe out 350,000 shareholders, many of them small savers with little knowledge of financial markets, after it emerged it had a negative value of 4.2 billion euros." Now if only the Spanish wipe out ended with Bankia's shareholders...

More:

The measure, which will hit shareholders who were encouraged by aggressive marketing tactics to invest in the company, is seen as vital if the nationalised bank is to be refloated.

 

A source close to the Bank of Spain said Bankia would receive 18 billion euros of European money by Friday and launch a capital increase in the first half of January when current shareholders will lose practically their entire investment.

 

Under the European Union plan to prop up Spain's banking sector, shareholders must be the first in the queue to suffer losses. This has already been the case in Ireland where shareholders in Anglo Irish Bank were left with nothing.

 

"Are we looking into leaving shareholders with something? Yes. How much? That's too soon to say. Will it be very little? For sure," said the source on condition of anonymity.

 

"But that will be purely symbolic. I can assure you they will lose up to the shirt on their back."

Bankia shareholders today; Spanish bondholders tomorrow... at least according to the brains behind the ongoing slow motion trainwreck European restructuring Lee Buccheit.

 


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Thu, 12/27/2012 - 08:54 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Life is tough bitch - GM bondholders

Thu, 12/27/2012 - 09:05 | Link to Comment ShrNfr
ShrNfr's picture

Actually, the GM bondholders did get about 10 cents on the dollar. That is 10 cents more than the Chrysler bondholders got for their secured bonds. They didn't get anything, even in Fiat currency.

Thu, 12/27/2012 - 09:43 | Link to Comment SmallerGovNow2
SmallerGovNow2's picture

So ten cents on the dollar makes it okay?  When they were put at the back of the line and by law they should have been first?  So when law is inconvenient then we just change it and say too bad?

Thu, 12/27/2012 - 10:44 | Link to Comment unununium
unununium's picture

Life is all sunshine and lollipops, bitch

Citi bond holders
BofA bond holders
MBS bondsellers at par
Db bond holders
Etc. etc. etc ETc

Thu, 12/27/2012 - 09:01 | Link to Comment q99x2
q99x2's picture

Yep that is how the banksters take down the nations one after another. That is until someone left without a shirt on their back realizes they have a spine that is their next target.

Thu, 12/27/2012 - 09:04 | Link to Comment Gunga
Gunga's picture

"The measure, which will hit shareholders who were encouraged by aggressive marketing tactics to invest in the company,"

The theft becomes more obvious and daring every day.

Thu, 12/27/2012 - 09:06 | Link to Comment ShrNfr
ShrNfr's picture

Don't worry, here in the US, Uncle Ben does your "investing" in US treasury bonds for you.

Fri, 12/28/2012 - 06:28 | Link to Comment mr_T
mr_T's picture

BANKIA was created by the merger of many failed cajas/regional banks. It was a scam for investors from the start. Should have never been allowed to go public.

Your savings... If u don't hold it.... You don't own it.

Thu, 12/27/2012 - 09:08 | Link to Comment Buckaroo Banzai
Buckaroo Banzai's picture

"Are we looking into leaving _____________ with something? Yes. How much? That's too soon to say. Will it be very little? For sure," said the source on condition of anonymity."

Great all-purpose quote for 2013. Fill in the blank with any of the following:

Shareholders
Bondholders
Pensioners
Widows
Orphans
Taxpayers

...or anybody else who isn't politically connected, or enjoying federal employment.

Thu, 12/27/2012 - 09:16 | Link to Comment edb5s
edb5s's picture

This explains the lack of Corzine news recently. He is the anonymous source, he's been across the pond teaching those eurocrats a thing or two.

Thu, 12/27/2012 - 09:20 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

We let him languish in prison while we live the good life.....what have we become?

Thu, 12/27/2012 - 09:24 | Link to Comment fonzannoon
fonzannoon's picture

futures green again. The most predictable market drop in history just does not want to cooperate. CNBC and their shitbag ratings are pleading for a crash so someone tunes in.

Thu, 12/27/2012 - 10:28 | Link to Comment IamtheREALmario
IamtheREALmario's picture

Will not happen because the major banks have been given trillions of dollars of money from the Fed to be the buyers of last resort and they use that money to keep the market at fraudulent levels. It is beyond the point of manipulation.

Thu, 12/27/2012 - 09:28 | Link to Comment ZeroPoint
ZeroPoint's picture

Please, keep the pen and the free toaster. Our gift to you......

Thu, 12/27/2012 - 09:43 | Link to Comment pan
pan's picture

Counterparty risk!  Hold physical bitchez!

 

Thu, 12/27/2012 - 09:56 | Link to Comment CrimsonAvenger
CrimsonAvenger's picture

At least they can dry their tears in their spiderman towels.

Thu, 12/27/2012 - 10:08 | Link to Comment MFLTucson
MFLTucson's picture

Perfect, how much money will the Jewish toilet lickers/gangsters get while the savers get fucked?

Thu, 12/27/2012 - 10:18 | Link to Comment Tirpitz
Tirpitz's picture

"Under the European Union plan to prop up Spain's banking sector, shareholders must be the first in the queue to suffer losses."

Only private ones, though. The big shark speculators will be paid in full, and the derivatives gamblers can count on the billions they are pulling in again.

Thu, 12/27/2012 - 11:39 | Link to Comment Son of Loki
Son of Loki's picture

"Spanish house price decline accelerates to 15.2% year-on-year The last time I reported on the Spanish housing market in August, we were in the midst of a bank deposit run caused... 14 December 2012 at 11:37"

 

From:

http://www.creditwritedowns.com/

Thu, 12/27/2012 - 10:25 | Link to Comment IamtheREALmario
IamtheREALmario's picture

Hence why Kyle Bass said shorting ANY European bank is a good bet.

There is something wrong when banks who create their money out of thin air get preferential payment back of their loans ahead of people who were conned by a bank-lead marketing campaign into using their savings from their life-time's labor to "invest" in the bank and help prop it up.

The money has meaning to the people who invested it because they earned it, they need it to feed and shelter themselves now and through retirement while for the banks that create the money out of thin air, it is simply a journal entry. The banker created rules are not cast in stone, only rules creted to benefit the bankers at the expense of others.

This type of biased treatment must end because it is an unfair situtation. The bankers are civil criminals who should be punished for their crimes.

Thu, 12/27/2012 - 10:37 | Link to Comment Monedas
Monedas's picture

Bankia Spankia .... small investors with little knowlege of financial markets .... like Monedas ?    I am a simple, heritage hoarder because it's the only thing I know how to do ! 

Thu, 12/27/2012 - 10:43 | Link to Comment theleak
theleak's picture

Could this also happen to systemic banks , like here in Greece tha National Bank of Greece (NBG)?I mean the wipe-out

 

Thu, 12/27/2012 - 17:34 | Link to Comment From Germany Wi...
From Germany With Love's picture

Why doesn't the ECB simply print the money and give it to Bankia in order to fix its balance sheet? /trollface

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