This page has been archived and commenting is disabled.
Portugal President Admits Espirito Santo Failure Could Be Systemic As Another HoldCo Goes Bankrupt
As RioForte joins its parent ESI in bankruptcy, in a strangely honest turn of events from a European leader, Portugal's President Anibal Cavaco Silva warned on Monday that fallout from the financial troubles of the founding family of Banco Espirito Santo (BES) could affect the wider economy. With Portugal's hope-strewn GDP growth expectations at only 0.9% for 2014, they do not have much room for disappointment before the nation (whose yields remain near record lows) double- or triple-dips back into recession. Silva concluded, "We cannot ignore that there will be some impact on the real economy," which is odd given every talking-head has explained it is "contained" and "priced-in."
Rioforte joins ESI in bankjruptcy...
- *RIOFORTE SAYS IT SEEKS PROTECTION FROM CREDITORS
- *RIOFORTE SAYS FILING IS LINKED TO DIFFICULTIES AT ESI
Just another default in the chain
President Anibal Cavaco Silva is the first high-profile politician to warn of a possible economic impact from the Espirito Santo crisis, after the family asked for creditor protection for one of its key holding companies on Friday.
Last week another of the family's companies failed to repay on time over $1 billion in debt owed to Portugal Telecom, which had a knock-on effect on the latter's merger with Brazil's Grupo Oi, forcing it to take a cut in its stake in the new entity.
"If some citizens, some investors suffer significant losses (from the Espirito Santo group) they may delay investment decisions, or some of them may find themselves in very big difficulties," Cavaco Silva said in comments during a visit to South Korea, which were aired on local television.
"We cannot ignore that there will be some impact on the real economy."
Portugal, which in May emerged from an EU/IMF bailout it had to take during the euro zone debt crisis, is expecting its economy to grow by 1 percent this year, the first year of growth since 2011.
* * *
Which does not leave much room for Portugal's growth....
»
- 10108 reads
- Printer-friendly version
- Send to friend
- advertisements -
Soooo, ECB is refusing bailout?
Soooo, IMF is refusing bailout?
Sooooo, Lew has not called Draghi and Lagarde yet to bailout this bank?
Dude, bailouts are soooo 2008. It's all about bail-ins today.
IS systemic. IS
A virtual certainty.
Lie fucker. It's serious so Lie
Lie fucker. It's serious so Lie
The problem is everyone knows the truth these days.
Time to "fix" the interwebz. No more problem.
It impossible to bail-in $1.4 quadrillion derivatives.
Bail-in will never happen. It will be riots across Europe and USA and even police and military will join the riots.
Defaults and haircuts are bail-ins. So is higher, much higher taxation. Hyperinflation is a bail-in.
the bottom line is that everyone holding fiat and paper "assets" will get fucked.
oh well.. don't say you weren't warned....
That is the issue: Who will bear the losses.
Somebody will get the 'bail-in' for sure and it will be insolvent oligarchs, not military and police pensions.
Translation: "Bitcoin, bitchez."
That's the whole point but one which few seem to understand. Bail-ins are not confined to bank deposits.
Just ring-fence that mother, already.
–Green Shoots
Refusing bail-out, if that occurs, would be the sign that the executive order to crap the system is about to be signed.
This bank would be the first small sacrificial lamb to be offered to gods.
They're locked and loaded: http://www.imf.org/external/np/sec/pr/2014/pr14352.htm
Of course they theoretically can.
My question is: Will they CHOOSE to?
They chose to kill Bear Stearns and Lehman, then MF Global.
pardon my unbridled optomism but perhaps our central overlords know full well that this particular bank can go without it impacting the financial system in any way other than to prove that the system can handle a bank going under without it taking everything down with it.
So they thought about irish and greek banks until Geithner called IMF and Draghi and told them that US banks had written massive swaps on those and would go down
They can't even let a freaking bulgarian bank go down or do a bail-in on that bank, 4th in Bulgaria.
You know why?
Because Unicredit and Raffeisen run Bulgaria's banking system
Say it ain't so, José.
They said it was all fixed, dagnavbbit!*
* Flemish for Dangnabbit!
sooooo, UB fucked
real economy... in Portugal... I guess the presidente hasn't got the memo yet.
Does the Family have enough time to get all of their money out of the country first..that is what is important right now...and you can bet they are
Meanwhile, in Cyprus....FBME bank was placed under Govt administration.
http://cyprus-mail.com/2014/07/22/fbme-placed-under-resolution/
Honestly, we (FBME) are solvent. It's just that German and US banks won't transact with us.
That's how the US hegemony works. They issued a money laundering report against FBME. Tanzania told USA to buzz off. Cyprus could not and followed the US report. Germany and US strangled the small bank by not dealing with them. Depositors might pay the ultimate price.
Money laundering is done at a small scale in small banks , however HSBC and others are world leaders in money laundering, however no diktat is passed against them. US and Germany never think to stop delin with HSBC.
Most large banks have admitted to guilt now in money laundering, FX and Libor manipulation, gold and other commodity manipulation yet nothing is done to these large players but smaller ones pay a price by being taken over under US imperialism. JPM is even alleged to have helped Madoff. No need to say anything about Corzine here. Less said about Swiss Govt / bankers dealing in illegal money for 6 decades, the better.
It's so sad to see one rule for the mighty and one rule for those who dont follow US diktat, Putin included.
I wonder why US does not have the guts to ever pass any sanctions against China?
Is Obama scared of China or he just doesn't have guts when it comes to China? Guess Obama has heard never to fight someone stronger than yourself....
"Less said about Swiss Govt / bankers dealing in illegal money for 6 decades, the better."
Am I to assume that it means what they're doing now is worse than them laundering Nazi Jew-tooth gold?
That news makes you think. BTFATH!
I get such a kick out of bank defaults while US markets find more all time highs. Don't you yellen?
-1% GDP growth, bail-in deposit confiscations, then an ECB bailout with punishing austerity.
You don't just steal the old ladies purse, you knock her on the head then push her to the ground.
Ask Jon Corzine, he knows the routine.
That's only if you can't take out a life insurance policy on her...
Don't forget to swipe the jewelry, EB. Some of that bling ain't just paste and 10ct, You know!
Citibank and Santander both issued reports today stating that the impact of ES bank imbroglio will be limited and things will get better in the weeks ahead...so let us see.
EURUSD doesn't seem to confirm their point of view.
Turn those machines back on!
and the phony paper prices of Gold and Silver continue to be manipulatively capped below $1320 and $21 respectively...
what a fucking joke...but thanks for more time to rid myself of worthless green pieces of paper banker assholes..
and the Chinese ghost commodity scandal has gone oddly quiet. I have to wonder when that will rear its ugly head again...
That was WEEKS ago. Surely it's sorted out by now. In any case, even if it isn't, it's old fucking news - unless you can work some dancing bears or celebrity meltdown, (preferably with drugs and nudity) into it, the Chinese commodity scandal is done.
Indeed, EVERYONE likes drugs and nudity, no?
haven't GS just taken a 2.27% stake in this shitbox?
I know Klarman took a big position in it.
that's why the Euro hit a 8 month low!
Keep buying those stocks. The Fed has every tool it had in 2008 to stop the decline. And it eventually worked.
Did all the banks drink the local water, then?
PIGS lead to the slaughter.
Is the English translation of 'Espirito Santo' Lehman?
We are all extremely lucky that Portugal's banking system is entirely self contained, and that there's no chance at all of some unforeseen cascading derivatives breakdown occurring as a result of this.
Think of it, imagine if these any of these Portuguese FIs were part of the global system!
That, and the fact that it's well-capitalized. Leverage is only 4:1 I'm told.
Wait, what?
Just default already and get it over with.
Imagine the Chairman of China Inc. landing in Lisbon to tell the Portuguese : "We will bail you out just like we told Mrs Kirchner we will bail her out when the Supreme pulls the "Vulture HF" rug from under their Argentinian feet next week.
Things are beginning to move on all fronts.
Portugal is a Blasket case
Well so much for that systwmic warning, BES is UP! , all Portuguese Banks are up