Europe's Largest Bank Stock Suspended, Admits Need For $8.9 Billion Capital Raise

Tyler Durden's picture

All is clearly not well below the surface. Europe's largest bank (by market value) has admitted in a regulatory filing that it needs to raise capital. As WSJ reports, Banco Santander SA said it would raise up to €7.5 billion ($8.88 billion) in a capital hike, a bid to address long-running concerns among investors and analysts that its financial cushion was weaker than peers. European banking stocks are up over 2% today as Italian banks surge
limit up (BMPS +13%) on speculation that they will be purchased by Santander (who 'pumpers' believe are raising this capital to go on a spending spree) and 'old' Draghi headlines.

 

As WSJ reports,

Santander, the largest bank in the eurozone by market value, said in a regulatory filing on Thursday that it would raise the capital through an accelerated book build.

 

The Spanish stock market regulator suspended trading in the bank’s shares ahead of the announcement.

 

Santander said in its most recent quarterly earnings presentation that its capital ratio under the latest regulatory requirements, known as “fully-loaded” Basel III criteria, would be around 8.5% to 8.6% of risk-weighted assets, below its European peers and a source of concern for some analysts and investors.

 

The move is the latest by Ana Botín, who took over as the bank’s executive chairman in September after the death of her father, longtime chairman Emilio Botín.

*  *  *

Santander closed EU6.85 before regulators suspended it...

  • *SANTANDER SHARE SALE PRICE GUIDANCE EU6.18 TO EU6.50: TERMS
  • *SANTANDER SHARE SALE PRICING DATE JAN. 9; TRADE DATE JAN. 12

Oops!!

*  *  *

  • *SANTANDER SEES STRUCTURAL GROWTH OPPORTUNITY: BOTIN

And that means speculation... and Italian banks take off...

 

Admittedly Draghi "Old" headlines about sovereign QE hit around the same time. More fun-durr-mentals.

And the Santander crushed the specs dreams...

  • *SANTANDER HAS NO PLANS FOR ACQUISITIONS, BOTIN SAYS
  • *SANTANDER SEES `HUGE OPPORTUNITY INTERNALLY,' BOTIN SAYS

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Headbanger's picture

WHOA!!!    Holy shit!

This is going to crush the """market""" now!

Cause here's our new "Lehman Moment" folks!

Eternal Complainer's picture

8.9 bilion...
Pffft, chump change!

Headbanger's picture

It's only the tip of the ice berg you mook!

Can you say "bank runs"?

Go ahead and try it...  baaaaaank ruuuuuuns

 

pods's picture

It doesn't need capital, it just wanted a cushion like it's peers.

Like Kim Kardashian's friend when looking at her gigantic caboose. That's all.  It's just this "cushion" costs $8.9 billion.

pods

El Vaquero's picture

Santander is fucking evil.  Fuck those fucking motherfuckers.  When I was getting sued by a TBTF, I was in contact with a bunch of other people who were in a similar situation.  One guy was in law school to become a consumer attorney because of his encounters with Santander.  He wound up in situations where they were unlawfully repossesing his shit because of their fuck ups and came near to the point of having to use lethal violence with the repo guys.  Fuck those motherfuckers. 

logicalman's picture

A good friend of mine had similar problems with BMO in Canada.

DetectiveStern's picture

They took over abbey national in the UK before the take over abbey national were widely known as scabby national due to their abject uselessness. Both in the banking world and with joe public.

WillyGroper's picture

Another Cramer pump & dump fav.

Any insight on BBVA?

MOB666's picture

www.getoutofdebtfree.org

 

seems to work with a bit of paperwork, santander seeem pretty popular on there amoung the uk folk

Headbanger's picture

Yeah right .

Just like the retards who said Lehman was safe just before they imploded.

This is where it starts to unravel again.

But this time there's not enough QE to stop it all from imploding into the abyss.

Enjoy the show!

teslaberry's picture

there's alwyas 'enough qe'. 

money is almost free to print. the question is WHO IS IN POWER TO PRINT IT AND WHO GETS IT AND WHEN. 

the power dynamic means money isn't free for every bank when that bank needs it. the games of power determine the dynamics of failure and rescue. 

 

'lack' of money isn't the issue. it's 'lack' of willpower by those IN power to give it at the appropriate time from the perspective of the one asking for a bailout. 

maskone909's picture

your right about that bro.  those un-recap'd banks kyle bass was talking about-  well, here we go again.

so we should expect gold to get hammered right about now

Bloppy's picture

These Santander clowns now have a branch in just about every town here in the Northeast. Looks like they're positioning for an American bailout.

 

Catholic League's Donohue: cartoonists got what was coming to them!

http://tinyurl.com/lkjqgt3

insanelysane's picture

Recapitalize by sending US deposits to Spain and then have US division file for bankruptcy.  FDIC insurance to depositors.  Easy-peasy.

insanelysane's picture

I know what you're thinking.  This can't happen because there are rules.  Well Corzine wasn't supposed to transfer deposits to another entity and the other entity wasn't supposed to accept the transfer without a signature stating the transfer was NOT deposits.  But said funds were transferred and never returned.

Telemakhos's picture

Come on, "another entity?"  This isn't Voldemort: you can say "JPM's uglier, less-responsible stepchild in London."

neuronius's picture

anytime i see the word "terror" used in an article, i get skeptical of the source of information.  

the word is a tool, used for a purpose.

Seasmoke's picture

It's strange. I see this bank popping up all over NJ. Only just in the last year. Something does not add up here. 2+2=5

Catullus's picture

Here's the math:

If you're in the US Federal Reserve System, get bailout.

Troy Ounce's picture

 

 

I did not say "bankrun".

pods's picture

I bet the term "ringfenced" enters the 2015 lexicon again.

They love them fancy words in Europe. So stylish.

pods

Stoploss's picture

WAIT!!!!! Raise rates first!!!

Dubaibanker's picture

You mean the largest EU bank that passed the stress test just on Oct 26, 2014 has failed.....How could that be possible if the test were not fudged? Which indicates they were fudged...ok...now I am confused...

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/11186674...

maskone909's picture

but wait, that was the first stress test.  you clearly didnt read the 37'th revision.  in small print under article 23423 section 5745 in small print, this was discussed in detail.

Catullus's picture

Hey. I need to access capital. What should I do? I know. Let me issue shares!

Sorry, market is closed for you.

jubber's picture

A bit like BOA buying Countrywide or JPM buying Indymac, must have the same shrewd $500K a year analysts

Hitlery_4_Dictator's picture

The ECB has got this. It's all good guys. God ZH people just need to take a chill pill and relax....the last 5 years have shown they got everythign under control. Might as well get rid of this site.  Nothing matters anymore, inlcuding this minor hiccup.

 

Nothing Else Matters - https://www.youtube.com/watch?v=tAGnKpE4NCI

KnuckleDragger-X's picture

Well we know where Draghi wants to throw his magical money. The question is how many other banks are in the same shape but won't admit it...yet?

WTFUD's picture

I'm partial to the Housing Stock on Santander's Books. s/c

Madcow's picture

The problem with "Europe" is that there is no possibility for hope of anything ever getting better - and the people know it.  Europe's leaders need to be honest with themselves and prepare for 20-30 years of escalating deflation, bankrutcy, debt repudiation, contract abrogation, etc. etc. etc. 

The public is already hip to the fact that things are set to get worse and worse and worse and worse - basically forever (20 years may as well be "forever) - so the political leadership may as well face up to reality. 

 

aleph0's picture

...."Europe's leaders need to be honest with themselves and prepare for 20-30 years of escalating deflation, bankrutcy, debt repudiation, contract abrogation, etc. etc. etc." .... 

Europe's leaders need to GO !

maskone909's picture

europe is a continent.  yet it is refered to as a country or some unified territory. did they really expect such a diverse population to live under the same roof and break bread?

LawsofPhysics's picture

Might I suggest those "leaders" prepare for retribution as well.  there will be no progress without it.

wmbz's picture

In the event that the ECB drags it's feet a little fear not, the USSA taxpyer backed "mostly" IMF will step in and fix it right up!

It's easy to toss out billions, trillions when it is not yours and will never be your problem.

venturen's picture

obviously they didn't place employees at the appropriate regulatory and government positions. You got to love Goldman and JPM...well till the wheels come off...which is happening

Miss Expectations's picture

OT

One of the funniest things I've seen in awhile was a video of Alan Dershowitz defending himself against the allegations that he had sex with one of Epstein's sex slaves.  Funny how?  Behind him was a painting of a big-bottomed naked woman.  I can't find the video anywhere now, but here's a still shot:

http://www.businessinsider.my/how-alan-dershowitz-got-involved-in-jeffre...

MsCreant's picture

What a nightmare to have sex with that thing, never mind do it when I am underage. Even his hands look horrifying, never mind other body parts. 

It would need to be pay or force. 

pods's picture

British Royals, moneyed interests, Jews (yes, I said Jews) and deviate behavior.

Same as it ever was.

I know that this sick shit has gone on all throughout history, but it does seem to be prevalent among the ueber wealthy moneyed interests.
That and Mexicans.

pods 

Bay of Pigs's picture

Jeffrey Epstein, Prince Andrew, Bill Clinton, Alan Dershowitz.....quite an All Star crew right there. Haha...

MsCreant's picture

There are times when a bullet to the brain is the right answer. If these alegations are true, just line them up on their knees with their hands secured behind their backs and let the girl have the gun if she wants it, if not, let her watch if she wants to. These creatures are monsters. 

q99x2's picture

Nothing to see here. It is a software entry. They didn't want to tell anyone that's all.

MsCreant's picture

Can someone tell me when an entity IS bankrupt? I seem to see stories like this and "think" they are bankrupt and I turn out to be wrong.

TBTB.

delivered's picture

This is the simplest fix ever from an accounting perspective (and for those of you that understand debits and credits)

Debit Credit

Customer Deposits 8,900,000,0000

Capital Surplus 8,900,000,000

 

There, fixed. Thank god for accountants and bail-ins.

MeelionDollerBogus's picture

I'll take "Top Advisor to Mr. Yellen" for $500, Ms.