Greek Banks To Merkel: "Please Ma'am, Can We Have Some Moar", Or Here Comes Bailout #4

Tyler Durden's picture




 

As loathed as we are to say "we told you so," but we did and sure enough eKathimerini is reporting this evening that: thanks to the 'voluntary' haircuts the Greek banks were force-fed via the latest buyback scheme and the political uncertainty causing non-performing loans (NPLs) to rise (in a magically unknowable way), they will need significantly more 'capital' to plug their increasingly leaky boats. The original Blackrock report from a year did not foresee a rise in NPLs (which Ernst & Young now estimates stands at 24% of all loans) and the buyback dramatically reduces the expected profitability of the banks as it removes critical interest payments that would have been due. Whocouldanode? Well, plenty of people who did not just buy-in blindly to the promise of future hockey-stick returns to growth. Expectations are now for the Greek bank recap to be over EUR30bn.

 

Via eKathimerini,

The country’s main banks are considering requesting additional funds for their recapitalization.

 

Senior bank officials say that the rapid deterioration in financial conditions caused by the back-to-back elections in mid-2012 has led to a greater increase in nonperforming loans than originally foreseen in the BlackRock report a year ago. They add that banks should proceed to greater share capital increases in order to respond to the new reality.

 

Ernst & Young estimates that nonperforming loans in Greece approached 24 percent of all loans at the end of 2012.

 

The bond buyback dealt another great blow to the credit sector that has made a revision of the capital requirements necessary. The Bank of Greece had estimated that operating profits for National, Alpha, Eurobank and Piraeus for the 2012-14 period would amount to 11.09 billion euros, which had been excluded from the calculation of the lenders’ capital needs. One of the main sources of those future revenues would have been the interest from the bonds amounting to 16 billion euros that banks had in their portfolios. However, the so-called voluntary sale of the bonds entailed a loss of those revenues for the banks.

 

According to estimates for the country’s four main banks, the buyback signifies a revenue reduction of at least 1.5 billion euros, thereby increasing their capital requirements. The Bank of Greece has announced that the four systemic banks will need in the region of 27.5 billion euros for their recapitalization, but if that estimate on the buyback is upheld, the bill will reach up to at least 29 billion euros.

 

The four lenders’ losses from the credit risk (including loans in Greece and abroad) are estimated at 14.58 billion euros, but if the deepening of the recession is factored in, the losses would grow by about 10 to 20 percent and the capital needs would expand by between 1.5 and 3 billion euros.

 

As a result the capital stock of 5 billion euros formed by the Bank of Greece for future needs may have to be used immediately by the big banks, eventually taking the total bill of the recapitalization process to over 30 billion euros.

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Mon, 01/07/2013 - 20:26 | 3131216 WhyDoesItHurtWh...
WhyDoesItHurtWhen iPee's picture

Truely a bottomless pit.

Mon, 01/07/2013 - 20:33 | 3131224 SafelyGraze
SafelyGraze's picture

butt not to neglect ireland

spoiler: it's a variant of the teaser image from the front page

Mon, 01/07/2013 - 20:59 | 3131312 francis_sawyer
francis_sawyer's picture

Aww man!... I was really hoping the LARGER PIC would have a nice camel toe...

Mon, 01/07/2013 - 22:37 | 3131537 wee-weed up
wee-weed up's picture

Yeah, dammit Tyler... talk about truth in advertising - we want to see moar of her!

Mon, 01/07/2013 - 21:49 | 3131437 a growing concern
a growing concern's picture

Thank you, kind sir.  I was feeling like I'd been tricked into clicking on this article.

Mon, 01/07/2013 - 23:19 | 3131615 NoControl
NoControl's picture

Use tineye.com

point to the pic's URL

and you get other sites that have a varient of this pic.

Like this one that has a larger version of her

http://pitsirikos.net/wp-content/uploads/2012/07/%CE%92%CE%BF%CF%8D%CE%B...

Ta-Da!

 

No camel-toe though :(

Tue, 01/08/2013 - 01:26 | 3131935 SafelyGraze
Mon, 01/07/2013 - 22:10 | 3131480 ZeroAvatar
ZeroAvatar's picture

Wow!  I can see goosebumps on her right cheek!

 

What is this, 2012 all over again?  I say we all just sign off until 2014.  It's just gonna be the same shit all over again, anyway.

Tue, 01/08/2013 - 01:03 | 3131871 Manthong
Manthong's picture

Lots out there: Paraskevi "Voula" Papachristou  

The last Olympics was not hard on the eyes at all.   :-D

Tue, 01/08/2013 - 07:50 | 3132273 SmallerGovNow2
SmallerGovNow2's picture

SWEET....

Mon, 01/07/2013 - 20:36 | 3131252 CPL
CPL's picture

Awesome!  And Bullish.

Mon, 01/07/2013 - 20:53 | 3131291 yogibear
yogibear's picture

It worked! The Greeks and Spanish have themselves a sugar daddy chump.

Spain and Greece keep coming back for more money and go shopping.

Mon, 01/07/2013 - 21:31 | 3131402 ball-and-chain
ball-and-chain's picture

I don't blame Greece.

Take what you can.

Then stick it to the Krauts.

Screw the Nazi bastards.

http://www.angrysinner.blogspot.kr/2013/01/saturday_7.html

Tue, 01/08/2013 - 08:19 | 3132305 From Germany Wi...
From Germany With Love's picture

I no worried. Euro collapse, currency reform, Germany has still the products the world wants.

Tue, 01/08/2013 - 01:45 | 3131750 cranky-old-geezer
cranky-old-geezer's picture

 

 

Truely a bottomless pit.

Black hole comes to mind.  Sucking in everything coming near it, even light.

Money Pit.  Like that Tom Hanks movie.   More money they pour into it, more problems they find.

It's a really sick joke now.  4 years of bailout after bailout, needing more bailouts.

They really need to let banks die, clear the bad debt, wipe out the worthless bonds, clear the crap out of the system, financial enema.

But "they" are bankers themselves, cant let their cronies go down, gotta keep the game going at any cost ...long as someone else pays that cost (taxpayers).

They're gonna bring nations to their knees letting 'em load up with so much debt.  

Maybe that's the plan.

Euro is finished.  ECB will print euros to infinity to keep the sovereign debt game going, keep bailing out banks as that sovereign debt loses collateral value.  Just a matter of time now.

USD is finished.  Fed will print dollars to infinity to keep the sovereign debt game going here, keep bailing out banks here as that sovereign debt loses collateral value.  Just a matter of time now.

Yen is finished.  Same reason.  Just a matter of time now.

Tue, 01/08/2013 - 04:05 | 3132142 Ghordius
Ghordius's picture

yes. and yet all fiat is a matter of time

and all financial transaction, money, the works, are about bridging time, exchanging the present for the future or the other way round

it's all a market of time preferences

the question is only until when - in the case of gold, for example, this "bridging" works since 6'000 years

Mon, 01/07/2013 - 20:26 | 3131219 cougar_w
cougar_w's picture

The Greeks are the ones calling the shots now. There will be no end to it.

Whoever defaults first defaults best.

Mon, 01/07/2013 - 20:41 | 3131263 Hedgerow-
Hedgerow-'s picture

Iceland?

 

WINNING!

Mon, 01/07/2013 - 20:55 | 3131297 Getting Old Sucks
Getting Old Sucks's picture

Let's not ruin the the status quo with logic now.

Mon, 01/07/2013 - 21:11 | 3131359 Freddie
Freddie's picture

Well I guess the Vikings would have kicked the Spartans arses.

Tue, 01/08/2013 - 00:42 | 3131829 zorba THE GREEK
zorba THE GREEK's picture

Please pass the straws Germany so that we Greeks can partake of more

of your delicious milkshake.

Tue, 01/08/2013 - 05:42 | 3132195 Nussi34
Nussi34's picture

Let´s bomb the useless Greeks!

Tue, 01/08/2013 - 08:21 | 3132309 From Germany Wi...
From Germany With Love's picture

No. (Besides there isn't anything left to bomb anyway.)
Let's just cut them free from the Euro and allow them to run their country the way they want it. And live with the consequences.

Wed, 01/09/2013 - 09:29 | 3135925 Nussi34
Nussi34's picture

>>>Let's just cut them free from the Euro and allow them to run their country the way they want it. And live with the consequences.

Let´s cut every country freem from the EUSSR!

 

Mon, 01/07/2013 - 20:27 | 3131221 nmewn
nmewn's picture

When you find yourself in the bottom of a hole...

Mon, 01/07/2013 - 20:34 | 3131244 Caviar Emptor
Caviar Emptor's picture

Maybe we should just send over the spare cash in Ben's cookie jar

Mon, 01/07/2013 - 20:43 | 3131267 chump666
chump666's picture

NY Fed is way ahead of you, re-cap'ing the ECB monthly and then the ECB has been flowing onto every junk bank in Europe.

Lenin would be laughing his rotten, decayed ass off.  We went commie crony style.

Russian collapse style...

Nasty.

Mon, 01/07/2013 - 20:53 | 3131290 nmewn
nmewn's picture

Yes, its everywhere and will end with the same result...bodies in the streets.

Mon, 01/07/2013 - 20:31 | 3131232 Peter Pan
Peter Pan's picture

Perhaps a return to the drachma will enable the Greek banks to recapitalise a lot more easily.

Not that Europe is happy or willing for that to happen.

Mon, 01/07/2013 - 20:33 | 3131236 Caviar Emptor
Caviar Emptor's picture

Hey, U.S. got QE4. So bailout #4 is Only fair. 

Mon, 01/07/2013 - 20:37 | 3131254 yogibear
yogibear's picture

Benrnake, Evans, Dudley and Yellen are stuck doing QE to infinity.

The ECB is stuck doing Greek and Spanish bailouts to infinity!

Mon, 01/07/2013 - 22:15 | 3131492 ZeroAvatar
ZeroAvatar's picture

I guess we can look forward to at least 10 bailouts, then? (create 'smiley-face' here)

Mon, 01/07/2013 - 20:35 | 3131247 yogibear
yogibear's picture

Just like Bernanke and the Fed is stuck buying ever increasing debt, the ECB is stuck buying Greek and spanish debt, otherwise it tanks and takes Europe down the rat hole.

Be comfortable because the central banks are stuck in a rut.

Mon, 01/07/2013 - 20:36 | 3131249 Getting Old Sucks
Getting Old Sucks's picture

LOVE IT!  Go Greece!  Milk that cow!

Mon, 01/07/2013 - 20:39 | 3131259 yogibear
yogibear's picture

These Central banks MUST save face and do bailouts indefinitely!

Sit back and watch the monetizing for years!

Mon, 01/07/2013 - 20:40 | 3131261 yogibear
yogibear's picture

Greece and Spain you have your sugar daddy. Take them to cleaners. Suck the tits dry.

Mon, 01/07/2013 - 20:38 | 3131255 Rustysilver
Rustysilver's picture

Is this what's call the Greek drama?  So, who's smarter, Greeks or Germans.

Tue, 01/08/2013 - 08:23 | 3132314 From Germany Wi...
From Germany With Love's picture

Germans. The Greek reputation will be shot for decades to come and it will hurt their economy. After the collapse of the currency Germany, otoh, will still have the reputation of delivering excellent goods.

Mon, 01/07/2013 - 20:43 | 3131265 Surrealist
Surrealist's picture

Apparently the Euro crisis is over and a thing of the past....

 

Euro crisis is over, Commission chief says

 

http://www.smh.com.au/business/world-business/euro-crisis-is-over-commis...

 

Time to raise my credit card limit to infinity!!!!

Mon, 01/07/2013 - 20:47 | 3131272 yogibear
yogibear's picture

Yes, debt to infinity! See deficits don't matter as long as every denies and plays the money make-believe game.

Just keep extending and pretending.

Mon, 01/07/2013 - 20:50 | 3131281 IridiumRebel
IridiumRebel's picture

I raised mine! I got one of those American Express Black Swan cards. No limits and comes with an inkjet printer!

Mon, 01/07/2013 - 20:53 | 3131294 Surrealist
Surrealist's picture

Inkjet too slow. Lazer printing for faster credit printing!

Mon, 01/07/2013 - 20:57 | 3131307 IridiumRebel
IridiumRebel's picture

If only I had one of those Platinum coins like the treasury!

Mon, 01/07/2013 - 21:17 | 3131369 Osmium
Osmium's picture

I'd be willing to bet if they mint the platinum coin Corizine will steal it.

Mon, 01/07/2013 - 21:21 | 3131382 smiler03
smiler03's picture

I have a 3D printer. it can make bullshit.

Mon, 01/07/2013 - 21:54 | 3131450 IridiumRebel
IridiumRebel's picture

They make that thing and it becomes the "answer" then I will be taking the Fam on our bugout. The collapse will be merely days away if not hours.

Tue, 01/08/2013 - 09:46 | 3132490 Ayn NY
Ayn NY's picture

My intel processor is much more efficient than your laser printer and that's how the cool kids are "printing" their money these days anyway, old fart...

Mon, 01/07/2013 - 20:44 | 3131270 IridiumRebel
IridiumRebel's picture

Bailout Number FOAR!

Mon, 01/07/2013 - 22:20 | 3131502 ZeroAvatar
ZeroAvatar's picture

Foar Moar Years!

Mon, 01/07/2013 - 20:47 | 3131273 Dr. Engali
Dr. Engali's picture

The Greeks can just keep doing this and the world will comply. After all the Eurocrats can't admit they were wrong. There are egos involved and they have to show the world they were right... no matter how much debt based money they have to throw at it.

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