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Espirito Santo Stock Suspended After 40% Crash, "Pending Information"
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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What is 40% of 0?
...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.
What machine was stupid enough to buy this shit?
Corzine is dialing for dollars to buy the bonds
The federal reserve.
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???
To further clarify there are actually experimental vaccines for Ebola, they were kinda shelved after the last outbreak subsided.
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.
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...
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.
If they have NIRP in Euro land, why not negative numbers for stocks?
MOAR unexpected facts!!!
Inconvenient Truths.
BTW going from 40c to 12c is really like a 60% to 70% collapse.
who in the hell bought that shit from goldman?
old yeller
Look for prematurely deceased at embankments and foundations of all kinds.
Their muppet client base???
Cayman Corzine fund III
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.
looks contained... sarc/
I want a busty weekend
Will you be long over this weekend?
Anyone holding over this weekend gets an ell expenses paid ,one way trip, to
Liberia as a consolation prize.
To be fair Goldman did say this was a sell a few hours ago. People should have listened.
I do not need more information, they are broke/bust/kaput.
Europe(VGK) is breaking down...
http://goldenopportunitytrading.blogspot.com
Hello Mr. and Mrs. retired muppet. Have we got a sweet income play for you.....
...and it's gone!
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...
Hold me close now Tony Danza....
Stop! In the name of love... I want my money back.
That kinda works.
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!
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.
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!
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.
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
Portugal...Argentina...Puerto Rico...
yepper, might be some interesting margin calls\liquidity raising this afternoon.
Wonder how that Ukrainian sovereign debt is doing....or Iraqi bonds.
They might be dumping US Equities to raise that Capital...right now.
like a slow boat to china
"Pending information", you mean like the CEO just met a nail gun?
No more like, "if we make it to the weekend eveything will be alright".
http://www.theguardian.com/business/2010/nov/09/fitch-credit-rating-agency-portugal-bank (2010 "news")
Oceans are nothing but water drops...
On second thought, are we close to one of those weekends where "surprise" announcements are made?
You may want to withdraw some cash from the bank, if you know what I mean.
All together now "bail-in weekend ! bail-in weekend !".
ZH @ 9:08am = Espirito shares crash 20%
ZH @ 11:07am = Espirito shares crash 40%
I love the sound of banks crashing in the morning ;-)
I'm having nightmares over a naked Fed emperor.
Just now another inconvenience...to add to the list.
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?"