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Espirito Santo Stock Suspended After 40% Crash, "Pending Information"

Tyler Durden's picture




 

Looks like it will be a busty weekend for European leaders calling the crisis over. Knife-catching 'value' investors have been torn asunder as Banco Espirito Santo's stock crashed another 40% today to 12c and has now been suspended by Portugal's securities regualtor.

  • *BANCO ESPIRITO SANTO SHARES SUSPENDED PENDING INFORMATION, CMVM SAYS

With Goldman bailing and the sovereign suggesting it is not willing to bailout, it appears - based on Sub debt's collapse - that a bail-in burden-sharing solution is coming. When will Bill Miller scoop it up?

 

Sub debt pricing in a massive haircut...

 

As Bloomberg reports,

Portuguese securities regulator suspended Banco Espirito Santo shares from trading pending information about the lender, CMVM says in statement on website.

Coming this weekend?

 

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Fri, 08/01/2014 - 11:09 | 5032625 So Close
So Close's picture

What is 40% of 0?

Fri, 08/01/2014 - 11:14 | 5032655 y3maxx
y3maxx's picture

...Bail in coming.

OT: up here in Canada, I got my Ebola shot a few weeks back at my Doctor's clinic.

if you get the shot, no chance of catching it.

Fri, 08/01/2014 - 11:16 | 5032681 Herd Redirectio...
Herd Redirection Committee's picture

What machine was stupid enough to buy this shit?

Fri, 08/01/2014 - 11:41 | 5032837 max2205
max2205's picture

Corzine is dialing for dollars to buy the bonds

Fri, 08/01/2014 - 11:43 | 5032853 Dr. Engali
Dr. Engali's picture

The federal reserve.

Fri, 08/01/2014 - 11:22 | 5032716 Tall Tom
Tall Tom's picture

If I were you I would get another Doctor. There is no vaccine.

 

Any Doctor who gives out a placebo is unethical.

 

Now BACK ON TOPIC...

 

Don't concern yourself too much with Banco Espirito Santo. That same Canadian Doctor told me that the contagion has been contained. There will be no meltdown in the Credit Default Swap Derivatives Market.

 

Now I am wondering...Did he just give me a Financial Placebo?

 

Maybe I ought to find another Doctor???

Fri, 08/01/2014 - 12:10 | 5033050 BurningFuld
BurningFuld's picture

To further clarify there are actually experimental vaccines for Ebola, they were kinda shelved after the last outbreak subsided.

Fri, 08/01/2014 - 12:32 | 5033218 Tall Tom
Tall Tom's picture

On vaccines for Ebola...

 

Nothing has been shelved.

 

Vaccines have protected nonhuman primates. Immunization takes six months, which impedes the counter-epidemic use of the vaccines. In 2003, a vaccine using an adenoviral (ADV) vector carrying the Ebola spike protein therefore was tested on crab-eating macaques. The monkeys twenty-eight days later were challenged with the virus and remained resistant.[71] A vaccine based on attenuated recombinant vesicular stomatitis virus (VSV) vector carrying either the Ebola glycoprotein or the Marburg glycoprotein in 2005 protected nonhuman primates,[72] opening clinical trials in humans.[73] The study by October, 2005, completed the first human trial, over three months giving three vaccinations safely inducing an immune response. Individuals for a year were followed, and, in 2006, a study testing a faster-acting, single-shot vaccine began; this new study was completed in 2008.[74] Trying the vaccine on a strain of Ebola that more resembles the one that infects humans is the next step.[citation needed]

The Food and Drug Administration has approved no candidate vaccines,[75][76][77] the most promising whereof are DNA vaccines[78] or derive from adenoviruses,[71] vesicular stomatitis Indiana virus (VSIV)[79][80][81] or filovirus-like particles (VLPs)[82] because these candidates could protect nonhuman primates from ebolavirus-induced disease. DNA vaccines, adenovirus-based vaccines, and VSIV-based vaccines have entered clinical trials.[73][74][83][84]

 

http://en.wikipedia.org/wiki/Ebola_virus_disease

 

Nothing has been shelved. The research is ongoing.

 

I have read articles that have reported that a vaccine for Ebola is two to six years from being developed.

 

There is currently no Ebola shot. I am sorry. It is bullshit.

Fri, 08/01/2014 - 13:13 | 5033490 The Phu
The Phu's picture

I'm being serious here... Wouldn't a "financial placebo" be counterfeit money??  It looks the same, performs the same, leads/helps me think it's the same thing... kinda like counterfeits.  Just a random thought...

 

 

Fri, 08/01/2014 - 14:03 | 5033786 Tall Tom
Tall Tom's picture

Yeah...That is a pretty damned accurate random thought. I agree.

 

Placebos act like drugs without any theraputic attributes.

 

And this economy is not anywhere near healthy...at all.

Fri, 08/01/2014 - 11:14 | 5032667 SHEEPFUKKER
SHEEPFUKKER's picture

If they have NIRP in Euro land, why not negative numbers for stocks?

Fri, 08/01/2014 - 11:11 | 5032634 Global Hunter
Global Hunter's picture

MOAR unexpected facts!!!

Fri, 08/01/2014 - 11:33 | 5032724 HardlyZero
HardlyZero's picture

Inconvenient Truths.

 

BTW going from 40c to 12c is really like a 60% to 70% collapse.

Fri, 08/01/2014 - 11:12 | 5032641 fonzannoon
fonzannoon's picture

who in the hell bought that shit from goldman?

Fri, 08/01/2014 - 11:15 | 5032671 buzzsaw99
buzzsaw99's picture

old yeller

Fri, 08/01/2014 - 11:26 | 5032732 HardlyZero
HardlyZero's picture

Look for prematurely deceased at embankments and foundations of all kinds.

Fri, 08/01/2014 - 11:43 | 5032859 Tall Tom
Tall Tom's picture

Their muppet client base???

Fri, 08/01/2014 - 12:19 | 5033136 debtor of last ...
debtor of last resort's picture

Cayman Corzine fund III

Fri, 08/01/2014 - 11:11 | 5032642 you enjoy myself
you enjoy myself's picture

CNYK still has a market cap of $175M so I'm sure BES will be fine.  What's truly amazing about the halt is that stocks are dumping on the news - its been a long, long time since bad news was treated as bad news.

Fri, 08/01/2014 - 11:12 | 5032645 Tjeff1
Tjeff1's picture

looks contained...  sarc/

Fri, 08/01/2014 - 11:14 | 5032653 gosh
gosh's picture

I want a busty weekend

Fri, 08/01/2014 - 11:19 | 5032697 SHEEPFUKKER
SHEEPFUKKER's picture

Will you be long over this weekend?

Fri, 08/01/2014 - 11:23 | 5032718 Winston Churchill
Winston Churchill's picture

Anyone holding over this weekend gets an ell expenses paid ,one way trip, to

Liberia as a consolation prize.

Fri, 08/01/2014 - 11:13 | 5032659 JailBank
JailBank's picture

To be fair Goldman did say this was a sell a few hours ago. People should have listened.

Fri, 08/01/2014 - 11:14 | 5032660 _ConanTheLibert...
_ConanTheLibertarian_'s picture
acabado!
Fri, 08/01/2014 - 11:16 | 5032662 SpanishGoop
SpanishGoop's picture

I do not need more information, they are broke/bust/kaput.

 

Fri, 08/01/2014 - 11:15 | 5032664 fiboman
fiboman's picture

Europe(VGK) is breaking down...

http://goldenopportunitytrading.blogspot.com

Fri, 08/01/2014 - 11:22 | 5032665 Dr. Engali
Dr. Engali's picture

Hello Mr. and Mrs. retired muppet.  Have we got a sweet  income play for you.....

Fri, 08/01/2014 - 11:47 | 5032890 Tall Tom
Tall Tom's picture

...and it's gone!

Fri, 08/01/2014 - 11:15 | 5032670 John McCloy
John McCloy's picture

    Hold me tight FAZ...lets start that 2008 like cascade of collapsing banks I have been waiting for with the Fed completely out of bullets...

Fri, 08/01/2014 - 11:16 | 5032685 fonzannoon
fonzannoon's picture

Hold me close now Tony Danza....

Fri, 08/01/2014 - 11:26 | 5032731 NoDebt
NoDebt's picture

Stop!  In the name of love...  I want my money back.

That kinda works.

Fri, 08/01/2014 - 11:20 | 5032691 Dubaibanker
Dubaibanker's picture

All 3 parent companies are bankrupt. But the bank is not shut yet. It is owned 14% odd by Credit Agricole and some others, who are pushing hard probably but do not wish to get wiped out but I dont think they have much choice. Raising EUR 4bn over this weekend should be an impossible task for this bankrupt bank.

The wonderful world of zombie bank and zombie companies keeps moving onward....the new word for bankruptcy is 'restructuring' these days ....whatever that means....

Why can't individuals who have lost jobs get a billion dollars each? That should solve the problem of poverty, unemployment, car sales, bank incomes, everything else in one go! 

Fri, 08/01/2014 - 11:43 | 5032849 Herd Redirectio...
Herd Redirection Committee's picture

Did you know a corporation is a person?  You are a person and a corporation is also a person. Thats the world we live in.   Don't blame me if your head explodes.  You were born and will one day die.  Corporations are  incorporated and never 'die', esp. not in the bailout era.

Fri, 08/01/2014 - 12:07 | 5033037 Dubaibanker
Dubaibanker's picture

Ha!

I know...that is why I said zombie banks and zombie companies...they never 'die'.

Sometimes US also lets companies go bankrupt like the solar ones, in which the powers that be have no stakes. In China, we hear bankruptcies. Occasionally in Cyprus and Australia too. Many airlines have gone bankrupt around the world and several real estate companies or contractors. Many a times, prior to a bankruptcy, China shows up, like in Volvo or India shows up, as in the case of Land Rover and the old shareholders get wiped out and are are bankrupted.

But when it comes to banks, something happens to the Govts....They get a weakness in their knees....Must be the smell of the newly minted notes, I guess....it does give a kick!

Fri, 08/01/2014 - 11:51 | 5032922 Captain Willard
Captain Willard's picture

This bank is toast and they all realize it now. They have moved on to dealing with the potential for Contagion spreading in Europe via the transmission mechanism of a failure/downgrade in Portuguese sovereign debt. The also must protect depositors if they can, or Portugal will fail flat out because deposits at BES are 20% of Portugal GDP. A bank run would be fatal.

This was all pretty obvious and I'm pretty surprised that Goldman got bagged on this. When the dust settles, we might find out that they are long CDS on BES debt.

Fri, 08/01/2014 - 12:23 | 5033170 Watson
Watson's picture

My guess is that there will be a public-private solution:
1. Public step: The Portugese state buys the loans made to the Protection-filed parts of the Espirito Santo family empire;
2. Anything else that looks dubious will be heavily written down;
3. Any losses in 1 & 2 are set against sub-debt (and possibly general debt);
4. Private step: Buffet/Sovereign wealth fund buys the result.

A. Buffet/Sovereign wealth fund gets a stake in Portugese banking for very little.
B. Portugese taxpayers get stuffed by step 1.

And I agree with your comments about Goldman.

Watson

Fri, 08/01/2014 - 11:22 | 5032717 vote_libertaria...
vote_libertarian_party's picture

Portugal...Argentina...Puerto Rico...

 

yepper, might be some interesting margin calls\liquidity raising this afternoon.

Fri, 08/01/2014 - 11:26 | 5032733 thamnosma
thamnosma's picture

Wonder how that Ukrainian sovereign debt is doing....or Iraqi bonds.

Fri, 08/01/2014 - 11:55 | 5032944 Tall Tom
Tall Tom's picture

They might be dumping US Equities to raise that Capital...right now.

Fri, 08/01/2014 - 11:24 | 5032722 orangegeek
orangegeek's picture

like a slow boat to china

Fri, 08/01/2014 - 11:26 | 5032728 thamnosma
thamnosma's picture

"Pending information", you mean like the CEO just met a nail gun?

Fri, 08/01/2014 - 11:57 | 5032954 SpanishGoop
SpanishGoop's picture

No more like, "if we make it to the weekend eveything will be alright".

 

Fri, 08/01/2014 - 11:27 | 5032740 jarana
Fri, 08/01/2014 - 11:28 | 5032745 thamnosma
thamnosma's picture

On second thought, are we close to one of those weekends where "surprise" announcements are made?

Fri, 08/01/2014 - 11:33 | 5032773 Winston Churchill
Winston Churchill's picture

You may want to withdraw some cash from the bank, if you know what I mean.

Fri, 08/01/2014 - 11:53 | 5032932 SpanishGoop
SpanishGoop's picture

All together now "bail-in weekend ! bail-in weekend !".

 

 

Fri, 08/01/2014 - 12:08 | 5033044 smacker
smacker's picture

ZH @ 9:08am = Espirito shares crash 20%

ZH @ 11:07am = Espirito shares crash 40%

 

I love the sound of banks crashing in the morning ;-)

Fri, 08/01/2014 - 12:17 | 5033106 debtor of last ...
debtor of last resort's picture

I'm having nightmares over a naked Fed emperor.

Fri, 08/01/2014 - 15:05 | 5033344 HardlyZero
HardlyZero's picture

Just now another inconvenience...to add to the list.

 

Aug 1 (Reuters) - ESFIL, a fully-owned subsidiary of Espirito Santo Financial Group, on Friday became the fourth company from the troubled business empire of Portugal's Espirito Santo banking family to seek creditor protection in Luxembourg on Friday.

ESFG, which itself was granted creditor protection earlier this week, said in a statement the filing in a Luxembourg court occurred after ESFIL became unable to meet its obligations under its commercial paper programme and other debt payments. The companies are registered in Luxembourg.

Fri, 08/01/2014 - 13:11 | 5033483 Paracelsus
Paracelsus's picture

Would not surprise me at all if there isn't some drug mafia money there somewhere's.

Could become a sticky wicket.  "Where's my dough,homey?"

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