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Austria's 3rd Largest Bank Goes Full Bear Stearns: CEO Blames "Short Sellers" For Firm's Demise

Tyler Durden's picture




 

You know it's bad when... you start blaming speculators. Very reminiscent of the "it's not us, we have a solid balance sheet, it's the short selling speculators" bullshit in the days before and after the stock crashes of American Insurance Group, Bear Stearns, Lehman Brothers and Merrill Lynch; mere days after his bank's bonds crashed, the CEO of Raiffeissen Bank (Austria's 3rd largest) has stated (unequivocally) that "panic was created artificially," blaming short-sellers for his bank's demise.

RBI CEO Svelda tells DiePresse.com,

"This panic was created artificially to a certain degree.

 

25 percent of our free float was shorted. As some have speculated neatly on falling prices and our share beaten down properly.

 

And the whole thing because of an initial loss of 493 million euros?"

Yep all short-sellers...

 

Nothing to do with worries about Swiss Franc mortgages... As Bloomberg reports, Raiffeisen had a total of 4.3 billion euros of Swiss franc loans outstanding as of September 2014, according to estimates by Moody’s Investors Service.

The largest part of these are in Poland, where the franc has appreciated 17 percent against the zloty since Jan. 14, threatening to push up defaults on the bank’s 2.9 billion euros of mortgages in the Swiss currency.

 

“There’s a lot of people worried about the bank’s Swiss-franc mortgages in eastern Europe,” said Gregory Turnbull Schwartz, who helps oversee the equivalent of about $82 billion at Kames Capital in Edinburgh and doesn’t hold Raiffeisen bonds.

 

Raiffeisen said Jan. 15 that it can’t yet forecast the effects of the appreciation of the franc on its asset quality.

 

The bank “will certainly take one measure or the other in the near future,” Chief Executive Officer Karl Sevelda told reporters on the sidelines of the Euromoney CEE conference in Vienna today. He declined to elaborate. Franc loans in eastern Europe are “not a big problem,” he said.

And just forget about the fundamentals...

The plunge appears focused on the potential capital shortfalls and talk of the bank selling its Russian unit - both have been denied... (as Reuters reports),

Raiffeisen Bank International has no desire to exit the Russian market, Chief Executive Karl Sevelda told a newspaper in response to market rumours it could sell its lucrative Russian business.

 

The Austrian lender has "absolutely no intention to sell our Russian bank", he told Der Standard in a report printed on Tuesday. A bank spokeswoman confirmed his remarks.

 

He was responding to Russian media reports that Raiffeisen was in talks with Alfa Bank about a potential sale. Sevelda dismissed these "unfounded rumours" and said Raiffeisen had "absolutely no contact" with Alfa Group.

 

Raiffeisen, which is conducting a strategic review of its portfolio, said this month losses for 2014 could surpass 500 million euros ($561.5 million) if it had to write down goodwill in Russia, its single most profitable market.

 

The spokeswoman also confirmed the paper's report that Chief Financial Officer Martin Gruell had denied market talk Raiffeisen may need to raise capital. It raised about 2.8 billion euros a year ago via a rights issue.

*  *  *

 

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Wed, 02/11/2015 - 23:05 | 5774301 Millivanilli
Millivanilli's picture

Naturally, ban short sellers.  Just like the last/current crisis.  Raise margins on anything that threatens the system.    Free markets my ass.

Wed, 02/11/2015 - 23:06 | 5774313 Oldwood
Oldwood's picture

But they would have nothing without the gamblers. That's gratitude for you!

Wed, 02/11/2015 - 23:10 | 5774328 Arius
Arius's picture

Not Again ...

 

Credit Anstalt 1931 .... again ???

Wed, 02/11/2015 - 23:27 | 5774372 Richard Chesler
Richard Chesler's picture

Pah, pAh Pah,

Another scumbag jew kicks the dust, 

barah darah darah da dah.

 

Thu, 02/12/2015 - 00:03 | 5774478 NoDebt
NoDebt's picture

I wonder if they are a counter-party to a lot of those DB derivatives.  That would make this interesting.

If they are, you can finally start using the term "systemic threat to the world financial system" again.

 

Thu, 02/12/2015 - 00:40 | 5774554 highly debtful
highly debtful's picture

Every time someone around these parts uses the word "interesting", it nearly gives me a bloody heart attack. Ever since the Chinese came up with their ominous proverb, they completely spoilt the adjective for me. Imagine a banker striking a major deal with you (yeah sure, as if you'd still for that one, right?) and then telling you the financial outcome will be "interesting" for you. 

Thu, 02/12/2015 - 00:59 | 5774589 Richard Chesler
Richard Chesler's picture

Zerojew,

Fuck you and your jew bought spam.

This will be last read/post in your worthess site.

motherfucker.

 

Thu, 02/12/2015 - 01:46 | 5774667 Keyser
Keyser's picture

Flounce:  To exit an internet forum or chat site in the most vocal and veherment manner... 

Don't let the door hit you on the way out, Dick...

Thu, 02/12/2015 - 03:26 | 5774792 mt paul
mt paul's picture

I wonder if they are a counter-party to a lot of those DB derivatives.  That would make this interesting...


CDO's

pensions and hedge funds 

are loaded up on them ..


Thu, 02/12/2015 - 05:57 | 5774891 ebworthen
ebworthen's picture

Yup.  It's that old moral hazard thing again.

When you gamble with other people's money and rob the public treasury - you get bailed out!

Unless you are the small fish scapegoat to be sacrificed to save the bigger fish to keep the ponzi going.

Thu, 02/12/2015 - 00:32 | 5774540 MrSteve
MrSteve's picture

same feces, new flies

Thu, 02/12/2015 - 05:28 | 5774886 Down to Earth T...
Down to Earth Thinking's picture

NIce name Gruell ? 

Wed, 02/11/2015 - 23:11 | 5774330 max2205
max2205's picture

And if they had to mark to market the stawk would be Zero.

Wed, 02/11/2015 - 23:23 | 5774357 Midas
Midas's picture

Did Jim Cramer recently say Raiffeissen would be fine?

Thu, 02/12/2015 - 00:12 | 5774500 Mr Pink
Mr Pink's picture

That's funny......I also blame short sellers for my demise

Thu, 02/12/2015 - 02:54 | 5774748 Wile-E-Coyote
Wile-E-Coyote's picture

I heard a box of nail guns turned up in the banks foyer!!

Thu, 02/12/2015 - 06:11 | 5774898 supercelld
supercelld's picture

I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... www.globe-report.com

Wed, 02/11/2015 - 23:07 | 5774315 tarsubil
tarsubil's picture

When you mark it to fantasy just add some fucking zeros on the end. This isn't complicated.

Wed, 02/11/2015 - 23:09 | 5774324 MonetaryApostate
MonetaryApostate's picture

The problem with adding Zeros to the end means people will pay for those zeros, you can't create something from nothing you know, and that means someone will have to make up for those ficticious zeros!

Wed, 02/11/2015 - 23:20 | 5774354 brooklynlou
brooklynlou's picture

I thought debt was money? If you keep making debt it's like making free money. I don't get what the problem is. Just add the zeros at the end. Problem solved.

/sarc

Thu, 02/12/2015 - 03:28 | 5774793 mt paul
mt paul's picture

decimal points

are for the weak..

Wed, 02/11/2015 - 23:08 | 5774319 dirtyfiles
dirtyfiles's picture

AHTUNG shorts

Wed, 02/11/2015 - 23:12 | 5774326 nmewn
nmewn's picture

Maybe you shouldn't have had so many outstanding shares floating around outside of your control which you always issued and cashed in for fiat as the normal practice for "payment for your fine financial services" in lieu of cash wages, you fat fucking retard.

Of course I have no way of actually knowing their "progressive" system of taxing wages vs stock grants is the same as America's but I'll go with the odds being in my favor ;-)

//////

Wup...never mind...ROTFL!

"...also confirmed the paper's report that Chief Financial Officer Martin Gruell had denied market talk Raiffeisen may need to raise capital. It raised about 2.8 billion euros a year ago via a rights issue."

Thu, 02/12/2015 - 00:43 | 5774559 jez
jez's picture

Has anybody asked these financial wizards if they also have a portfolio of Greek gummint bonds?

Or did they content themselves with mortgage lending in Swiss francs to Poles and Albanians?

Yay, foreclosures ahead! Transatlantic job opportunity for Linda Green! It'll look good on your resume, Linda baby!

Wed, 02/11/2015 - 23:10 | 5774327 bookwurm
Wed, 02/11/2015 - 23:11 | 5774334 yogibear
yogibear's picture

LOL, that guy in the photo looks like he had plenty $100 steak meals.

Good!!! Let them all go to hell where they belong!

Wed, 02/11/2015 - 23:26 | 5774369 DeadFred
DeadFred's picture

Doesn't it warm your heart to see a banker in distress?

Wed, 02/11/2015 - 23:41 | 5774415 Son of Loki
Son of Loki's picture

"... and it's gone!"

 

I love that video of the father telling his kid to hand his money over to the banker for investing so the kid can learn ..."and it's gone!"

 

https://www.youtube.com/watch?v=-DT7bX-B1Mg

 

Ha ha ha!

Thu, 02/12/2015 - 07:33 | 5774957 3Wishes
3Wishes's picture

Cross dressing or

Nailed to a cross 

 

Wed, 02/11/2015 - 23:13 | 5774336 kowalli
kowalli's picture

sanctions are working

Wed, 02/11/2015 - 23:13 | 5774338 booboo
booboo's picture

thus the reason for the call to bail out Polish housing market.

Wed, 02/11/2015 - 23:15 | 5774342 walküre
walküre's picture

Clearly, if they can't absorb the potential defaults from a few Polacks then GREXIT is NOT priced in ANYWHERE

Austria's banking sector is suffering from Russian sanctions. Greece is not alone with their veto position on further sanctions.

Can't see the European forest for the number of Bad Banks they've created. Soon Europe's financial sector is one gigantic black hole.

Reset, new old currencies and fresh chips for all.

All these statists are desperately trying to accomplish is to hang on to the system they've created against any and all better wisdom.

Wed, 02/11/2015 - 23:17 | 5774351 Goatboy
Goatboy's picture

Lets hope they fall and break their necks but stay alive.

-horse

Wed, 02/11/2015 - 23:25 | 5774362 LetThemEatRand
LetThemEatRand's picture

If those short sellers hadn't worn those short dresses, we would not have raped them.  It's ALWAYS someone else's fault.

Wed, 02/11/2015 - 23:27 | 5774373 IridiumRebel
IridiumRebel's picture

That bank was totally asking for it....

Wed, 02/11/2015 - 23:26 | 5774371 IridiumRebel
IridiumRebel's picture

Left field motherfuckers.....left field.

Wed, 02/11/2015 - 23:32 | 5774386 Jabotinsky_USA
Jabotinsky_USA's picture

The proper thing to do is to have some of these Australian and German banks enter the US inner city markets. I will be one of the first inline selling houses, mortgages, etc.  

Wed, 02/11/2015 - 23:42 | 5774387 williambanzai7
williambanzai7's picture

Remember, it is OK, indeed it is essential, to lie in the face of a crisis.

The Geithner Rule.

Incidently, as I recall, they don't actually lend Swiss Francs. The loan is denominated in Zloties but in an amount equivalent to a specified number of Swiss Francs.

So Mr Kowalski has to pay the Polish zloty equivalent of 500,000 principal of Swiss Francs plus interest. And the rate of exchange is determined at time of payment. This is essentially a derivative bet. Of course Mr K doesn't cover himself with a hedging contract and Raifessen thinks they are limiting their risk by lending in SFR zloty equivalent.

BOOM!

Wed, 02/11/2015 - 23:34 | 5774388 ThroxxOfVron
ThroxxOfVron's picture

A quarter of the float is short, huh?

Your shark-brained pals in Swizzyland decided to set you up with a currency dislocation that would ruin your un-hedged foreign loan portfolio and then bank coin kicking your ass by leveraging your own stock against you -and you don't like it?

Cash in whatever chips you have left at the price in red on the terminal and leave your bbry at the desk, asshole.

 

Note to American bankers: Glass-Steagal was your friend -and you deserve what's comin'.

I'm long boiled rope.

Wed, 02/11/2015 - 23:34 | 5774389 cherry picker
cherry picker's picture

This mortgage concept is nuts.  When you take the cost of normal 1,500 square foot home and a piece of land to put it on, I can see it costing a few dollars, but not the insane prices they charge for them today combined with all kinds of fees, middlemen, interest and property taxes.

When I was young I built my own home and held down a steady job while doing so.  I saved a ton of money.  That was 40 years ago.  I drove past it a few months ago and it was still a good looking house.  I didn't have to mortgage the place for 25 or 40 years.  Maybe they should outlaw mortgages.  People will still be able to build or buy homes, but in different ways, one that doesn't hold a gun to their heads.

 

Wed, 02/11/2015 - 23:35 | 5774395 JimboJammer
JimboJammer's picture

Oh  my ,  ,   some  bankers  out  of  work . .  breaks  my  heart . . .

Thu, 02/12/2015 - 01:09 | 5774581 e_goldstein
e_goldstein's picture

You should be concerned.

What if they start throwing themselves off of tall buildings,

or stab themselves in or out of the tub,

or jump off bridges,

or shoot themselves 7 or 8 times in the torso and head with a nailgun,

or...

Wed, 02/11/2015 - 23:35 | 5774396 Bossman1967
Bossman1967's picture

should be good for record run on the stawks silver bottom on this news makes sence.

Wed, 02/11/2015 - 23:37 | 5774401 Lumberjack
Lumberjack's picture

Flashback:

 

Raiffeisen Increases Cash Hoard on Greek Bank-Run Concern

 

http://www.bloomberg.com/news/articles/2012-05-24/raiffeisen-increases-c...

 

May 24 (Bloomberg) -- Raiffeisen Bank International AG has “several billion” euros in extra cash in case the Greek crisis triggers bank runs in Balkan nations like Romania or Bulgaria, where both the Austrian lender and Greek banks are active.

Raiffeisen has boosted its liquidity buffer to 25 billion euros ($31.4 billion), Chief Financial Officer Martin Gruell told journalists in Vienna today. That’s several billion euros more than it was before the Greek debt crisis accelerated last year, Gruell said. He declined to be more specific.

“We have massively increased liquidity,” Chief Executive Officer Herbert Stepic said at the same press conference. While Raiffeisen hasn’t lent to Greece or Greek banks, “what everybody is afraid of is that the private savers are becoming unsettled, that they knock at the door and want to see their money.”

Greek banks including EFG Eurobank Ergasias SA, Alpha Bank AE and Piraeus Bank SA own subsidiaries in Romania, Bulgaria, Serbia, Albania and Macedonia, where they compete with Austria’s Raiffeisen and Erste Group Bank AG and Italian-based UniCredit SpA and Intesa Sanpaolo SA.

Thu, 02/12/2015 - 00:07 | 5774486 brooklynlou
brooklynlou's picture

Er ... Sounds like they're screwed if a Grexit happens. I can see why the shortens are hovering round them like flies. If the polish mortgages don't kill them the Balkan branches will.

Thu, 02/12/2015 - 00:19 | 5774515 q99x2
q99x2's picture

Guys just trying to cut into my FAFSA money. Arrest him. Somebody call the police.

Thu, 02/12/2015 - 00:23 | 5774522 Smiley
Smiley's picture

"ITS EVERYONE'S FAULT BUT MINE, ITS EVERYONE'S FAULT BUT MINE..!"

 Such a popular narrative these days.  I'd call it cliche but, the sheep eat it up like it is the greatest newest thing every time they hear it. 

Thu, 02/12/2015 - 00:45 | 5774562 noben
noben's picture

Sounds like Hostile Takeover games (by non-Austrians) really chaff his Lederhosen.

Thu, 02/12/2015 - 00:50 | 5774575 christiangustafson
christiangustafson's picture

Personnel Officer: How's your driving record? Clean?

Travis Bickle: It's clean, real clean. Like my conscience.

Thu, 02/12/2015 - 01:52 | 5774678 ReactionToClose...
ReactionToClosedMinds's picture

just as long as the name of the Austrian Bank is not Kreditanstalt....whew...thought I might have stayup late into the morning to see if a domino parade started

Thu, 02/12/2015 - 02:06 | 5774687 trader1
trader1's picture

A number of investigators have suggested that Raiffeisen Zentralbank is involved in laundering money for the Russian mafia. The new interim Ukraine Prime Minister, Arseniy Petrovych Yatsenyuk, worked for Aval in the past when some of that immense amount of money was laundered through the bank. [7]

When Moldovan journalist Natalia Morar investigated money flows involving Raiffeisen Zentralbank, she said she received a death threat from the FSB and she was banned from Russia.[8]

Gazprom spokesman has said that Raiffeisen Investment AG is a Gazprom partner in RosUkrEnergo, an opaque Ukrainian company. On 6 August 2004 Interfax reported "100 percent subsidiaries of Russia's Gazprombank and Austria's Raiffeisen Bank created the RosUkrEnergoprom company for the supply of Turkmen gas to the Ukrainian market. The company, shared by the parties 50-50, will be registered in Switzerland. However, Raiffeisen Investment has said that it only manages RosUkrEnergo for unknown "Ukrainian businessmen".[9]

According to documents uncovered during the United States diplomatic cables leak US diplomats suspected Raiffeisen Investment was "a front to provide legitimacy to the gas company that we suspect the U.S.-indicted Russian crime boss Semyon Mogilevich controls".[10]

One of the cases involved Russian bank called "Diskont". To illustrate the scale of money laundering, $1.6 billion was transferred from Diskont Bank's accounts to Raiffeisen on August 29, 2006. According to New York Times, Diskont received a 10% commission from the money transfers.[11] In September 2006, the deputy chairman of the Central bank of Russia, Andrey Kozlov, revoked Diskont's license. Just days later Kozlov was murdered.[11][12]

The bank has been also suspected of laundering money for the Italian mafia.[13]

Thu, 02/12/2015 - 02:21 | 5774706 AgShaman
AgShaman's picture

hahaha....time to start selling some mountains again.

Thu, 02/12/2015 - 02:57 | 5774756 Paracelsus
Paracelsus's picture

 With the Swissie franc floated,and Polish currency rumbled and Polish mortgages

(subprime?) crashing,didn't I read where the Polish politicos were saying they would help

out the Polish (debt) consumers? Perhaps it was Hungary.I only mention it because the

Polish military has been very active in cooperating with NATO exercises and such.

I believe they crated up an ABM radar from the Kwajalein missle range and installed it on

the eastern Polish border.That and the training of the Ukies on Polish soil and no wonder

Putin has a case of the ass.

I don't know what the bankers next move is but they better think of something quick

(besides kicking the can).

Thu, 02/12/2015 - 03:00 | 5774759 sandhillexit
sandhillexit's picture

Slow down you crazy child
Take the phone off the hook and disappear for a while
It's alright, you can afford to lose a day or two (oooh)
When will you realize... Vienna waits for you?

And you know that when the truth is told
That you can get what you want or you can just get old
You're gonna kick off before you even get halfway through (oooh)
Why don't you realize... Vienna waits for you?

SUCKS to be AUSTRIA.  

There are 49.8 million German-Americans.  Every last one of them thinks its bullshit that BHO is pushing weapons on Europeans to start killing each other again.  And most of them don't even get that its all about the US fuck-up in Iraq/Syria.  Come on Angela, get a backbone.  


Thu, 02/12/2015 - 03:10 | 5774770 Soul Glow
Soul Glow's picture
Austria's 3rd Largest Bank is fine!
Thu, 02/12/2015 - 04:37 | 5774853 nixy
nixy's picture

Were they shorted..... or naked shorted.

Selling something you do not own used to be fraud...... people used to be punished for some reason.

Thu, 02/12/2015 - 16:30 | 5777419 K_BX
K_BX's picture

is buying puts then naked short selling?

Thu, 02/12/2015 - 05:17 | 5774881 HowdyDoody
HowdyDoody's picture

With naked short selling, you can take down anything, anytime, irrespective of the real state of the company, providing you have enough backing.

Thu, 02/12/2015 - 07:16 | 5774941 Herdee
Herdee's picture

Goodwill to all men.

Thu, 02/12/2015 - 07:27 | 5774949 Quinvarius
Quinvarius's picture

I am pretty sure this guy can get as much money as he wants from the Fed and the company will be back at all time highs within a year.  Just a hunch there.  But being that big, he is likely very connected to the free money hose.

Thu, 02/12/2015 - 08:44 | 5775121 2muchtax
2muchtax's picture

These guys love the market until the market stops loving them.

Thu, 02/12/2015 - 09:06 | 5775178 2muchtax
2muchtax's picture

I bet this asshole has a trading desk that is short somebody else.

I hear a lot of you guys bitching about naked shorts, keep in mind some third-party is loaning these guys gambling money. Do you blame the gambling addict or their loan shark?

lastly this guy bet against Swiss monetary policy, they're the last people you should bet against.

Thu, 02/12/2015 - 09:39 | 5775297 roadhazard
roadhazard's picture

I love good news in the morning.

Thu, 02/12/2015 - 10:27 | 5775528 orangegeek
orangegeek's picture

where are the hangings?  why no hangings??

Fri, 02/13/2015 - 16:10 | 5782194 allthegoodnames...
allthegoodnamesaretaken's picture

These banks are meant to fail.  No reason or rhyme needed.  The idea is, just get all you can and get out with as much as you can and that is usually billions of dollars if you are the CEO.  More and more Banks are going to fail, the idea of one world everything certainly includes one banking system.  One world government, one world bank, one world legal system, one world military, one head of all this, the same head that is running things today or his sons and daughters I suppose.  Actually, it can't be one, because the Rothschild family has more than one head.  Does anyone know how many Rothschilds there are now, I mean, the Mayer Amchel Bauer (Rothschild) family, there were five sons then how many are there now?

Whatever the case may be, the world is definitely heading toward that New World Order, i.e., reduced population, fewer people in charge of things, one defining factor that outweighs all the rest.  Fewer mouths to feed, fewer decision needing to be made, just better all around if you are one of the lucky ones who happens to be a bilionaire.

So many times in my life I have heard: I told you so, I am hearing it again, only this time it is so scary I beg it to be not true.  The issue at Fukushima, I have heard it was on pupose; the idea of the issue with Ukraine leading to a Nuclear War; the idea of a drastic and short time duration reduction in the human populations.  These scare the crap out of me because I know I nor any of my loved ones are on the list for survival.  My family and everyone I love outside my family will be victims if the plans are carried out as planned.  As planned.  What are those Georgia Guide Stones about and what did David Rockefeller suggest, repeated by Kissenger, Clinton, and who knows who else, behind closed doors.  Where there is smoke there is fire.  I am afraid and you should be.

We should know everything we have does not amount to a hill of beans; and, don't you love it when some creep says: buy gold, get ready for the future, who can buy gold.  If I could buy gold I might could head off this impending doom or at least buy some ground and dig a hole to hide in when the crap does hit the fan.  Shut the water off and I am made instantly into a crook or worse, because, I have no way to get water except out of the faucet.  Gees, get real.  It is news when a bank closes and the funds disappear but it not news when your government is crying for a nuclear war and just to get rid of a bunch of us...really, what does the MSM or the Newspapers say about all this stuff.  The News is not for us it is for the sucker's playing the games, the bankers, the politicians, oh yeah and of course Hollywood. 

Night will come to us suddenly.  We can know something, when we read of bank closings, when we hear of people dropping out of sight, when we notice the sound of aircraft over head, we can know to get our shoes on and get ready to run...just run, that's all we will be able to do...just run...cry...grasp to your chest your loved ones, and, the little puppies just born...all the zoo keeper could hear was the elephants screaming, he could not help them, he had to run away (Dresden WW2).

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