RANsquawk EU Market Re-Cap - 25th March 2013

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[Temporalist]

Cyprus isn't alone

Spain Brings the Pain to Bank Investors

Government to Impose Heavy Losses on Shareholders and Bondholders, Hire Advisers to Help Manage Lenders' Assets

"The restructuring terms announced by the FROB will impose losses of up to 61% at Spain's largest nationalized banks. At Bankia SA,   the largest of the institutions and the only one that is publicly traded, shareholders will be nearly wiped out and junior bondholders will lose around 30% of their original investment.

In keeping with EU requirements that investors bear losses before companies receive state aid, the nominal value of Bankia's shares will be reduced to €0.01 from €2 and the nominal value of its preferred shares and subordinated debt will be reduced to €4.841 billion ($6.29 billion) from €6.911 billion, the bailout fund said."

"The FROB also said it would reduce the value of preferred shares in other ailing banks—Catalunya Banc's by 61%, Banco Gallego's by 50% and NGC Banco's by 43%—and then convert them into ordinary shares. But as these three banks aren't publicly traded, the Spanish government said it would give the holders of their newly created ordinary shares the option of selling them to the country's deposit guarantee fund.

Last month, the FROB said the preferred shareholders at Banco de Valencia SA,   a smaller nationalized bank, faced losses of 90%."

http://online.wsj.com/article/SB1000142412788732410520457838060032531156...

[nmewn]

Our Bloombergism for the day is...

"We're not banning anything... Our job is to educate. It's the public's job to decide when they look on the grocery shelf or have the lever on a soda machine which thing to take, which product is in their interest. All we're trying to do is educate. Hopefully, if they understand that they would be better off with one product or another they'll make that intelligent choice."

Apart from a bold faced lie Bloomie..."your job" is to make sure the trash gets picked up.

But if you're claiming your "real job" is to educate...why don't you start teaching in NYC's public schools where 80% can't get into a community college because they haven't mastered basic math and reading?

That is all.