Banco Espirito Santo Plunges 20% As Goldman Cuts Stake

As we noted yesterday, Goldman Sachs (and its muppeted clients) bought Banco Espirito Santo bonds and stocks at around 50c. Having lost more than two-thirds of their money on that trade, this happened...

• *BANCO ESPIRITO SANTO SAYS GOLDMAN SACHS CUTS STAKE TO BELOW 2%

BES stocks is down over 20% this morning to fresh record lows. So much for the short-selling ban - maybe time for a 'selling' ban.

Comments

[So Close]

What is 20% of 0?

[slaughterer]

Can't believe Goldman would go so big on a collapsing European PIIGS penny stock.    Aren't they supposed to be smarter?

[fonzannoon]

What about Klarman and his $2,000 book. He got ass hammered too.

[Man Who Was Thursday]

There's loose talk about Goverment intervention:

http://www.publico.pt/economia/noticia/gestao-do-bes-banco-de-portugal-e...

(my translation)

The hypothesis of the state backing up BES bank was already ruled out by (Prime Minister) Pedro Passos Coelho and (Finance Minister) Maria Luísa Albuquerque, who might be forced to reconsider their own words. Luís Marques Guedes (Parlimentary and Presidency Minister) adressed, on Thursday, the possibility of "potential impact on the economy" if the crisis in GES (Grupo Espirito Santo) grows. The Minister did not discarded a state stake in the bank's recapitalization, but added that the first ones to try to save the bank should be the private shareholders and the market.

[firstdivision]

Those calls they sold to clients, and puts they bought from market profited far more than their hedge that they just closed out. 

[SAT 800]

Yes; they're supposed to be smarter. That supposition, which is part of your belief system, has been sold to you. It's the result of Public Relations, or advertising. Look up the history of Jon Corzine and his employment at Goldman Sachs; his childlike stupidity in Bond Trading put them at great risk, and they fired him; but they did it with a golden parachute of public monies, and a send off party; as it was, and is; of paramount importantce to maintain the illusion that they know what they're doing. They Don't. They know who they're doing; and they get plenty of inside information, but they don't know what they're doing.

[SAT 800]

slaughterer; you're naive. do your homework.

[Cacete de Ouro]

Will anyone be convicted after this conviction list fiasco?

certainly not the Directors of Research

[813kml]

If you are using mark-to-fantasy accounting, whatever you want it to be.

[Cognitive Dissonance]

Time for a 100-1 reverse split.

[SAT 800]

Enough to buy a Cheesburger on Tuesday; but not today. Seriously, )?); I find this amuzing. It is to laugh. Expect more Bank Failures at a mall near you, soon; it will become a popular movie.

[fonzannoon]

I can't figure out what is more weird, that goldman did not just have their original trades broken, or that there was a buyer on the other end of goldmans sell order.

[dontgoforit]

Belgium.  Belgium buys anything.  Just ask Mikey.

[101 years and c...]

luckily, global financial markets are not interconnected and there is zero chance of any counter party risk involved.  

[LawsofPhysics]

Shit, JPM is "bailing out" Argentina.  Jew york owns the E.Z., North America, and most of South America now.

I am surprised that Brazil has remained so quiet now that the distraction of the world cup is over.

[dontgoforit]

Nothing from nothing leaves nothing.

[youngman]

I bet the family still has their wealth.....and a few castles to boot

[The Fifth Empire]

Spot On

[Ban KKiller]

Heavy buyers of PM in the last year or so? I bet!

[The Fifth Empire]

Land is more precious than Gold

[Jano]

I contradict.

If you own a land in Europe, you are due to pay the tax.

ANd everybody, who has to pay tax, is a slave.

My observation: there is no tax, VAT, Income, Equity tax.... on gold here in the EU.

[buzzsaw99]

i have trouble believing the squid lost money overall. maybe on that one facet of the trade but somewhere else there had to be an aig loser that made it bonus time again.

[LawsofPhysics]

"God's work"

[813kml]

God is preoccupied serving eviction notices in Gaza.

[Q-Q-Q]

Arn't losses covered by the Fed at Goldmans?

[GFORCE]

You know it's over when the squid takes a loss. 2% token holding incase Jesus returns to earth, eliminates debt and s&p runs to 2050...

[NoDebt]

"2% token holding incase Jesus returns to earth"

I don't know why I found that so funny, but I did.  It's gotta be right because I don't know why they'd hold onto any of it.

[pods]

Odds that Draghi says either "ringfence" or "contained?"

pods

[sudzee]

Bail-out would have paid well for Goldman and muppets. Bail-in is another story, better to take some losses than loose all.

[Ban KKiller]

Do you need a reminder that Bank of America, continuing criminal enterprise, is broke? As in broken down pile of lying scumbags? USA!USA!USA!...we have fraud too!

http://wallstreetonparade.com/2014/07/senate-bombshell-testimony-today-c...

[Colonel Klink]

There's a reason why I call them Bankruptcy of America Muppet Looting.

[maxamus]

So you want a ban so Goldman is not allowed to cut their losses???

[Muppet]

Now Goldman has to wait 30 days to get back in to avoid 'wash sale' rules