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"Mark It Zero" National Bank Of Greece Plunges Towards New Lows

Tyler Durden's picture




 

Remember when Greece was fixed... when The ECB extended its ELA to Greek banks and bridge loans were provided to repay The ECB? As we noted previously, it seems Greek banks are a sell at any price and today's continued crash in National Bank of Greece ADRs ahead of 'supposedly' a Greek bank re-opening on Monday, suggest "mark it zero" is coming soon to some knife-catchers' portfolios.

 

 

As we wrote prevbiously,

We doubt that Greek savers will rush to put their money in the banks, and we think Draghi is taking a huge gamble by putting even more ELA into Greek banks just before the same banks will announce at any possible moment they are forced to liquidate existing shareholders. The popular outcry against the banking system once a bail in is confirmed, even if it does not involve depositors initially, will send shock waves through society and rekindle the bank run once more.

 

Ironically, the one thing that would help preserve confidence in the Greek banking system, is more transparency about the "performing" nature of Greek bank loans: if this amount has hit 50% (or more) on the total €210 billion of loans, then depositor haircuts become virtually inevitable - anything well below that and there would still be a modest cushion before bail-ins have to go up in the cap structure.

 

Which is also why we fear no transparency will be forthcoming and why we expect that people may be fooled once again into believing their savings are, well, safe only to find out the hard way they are anything but - a hard lesson that investors in insolvent Greek banks are about to learn first hand.

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Fri, 07/17/2015 - 12:57 | 6324170 bnbdnb
bnbdnb's picture

The deal just proves that everyone the third time...you're out!

Fri, 07/17/2015 - 13:08 | 6324207 Peribanu
Peribanu's picture

These are just ADRs and the volume is pretty thin compared to the frozen main stock listing in Athens. These are just a few guys speculating. When the big boys come in, it'll either do a pump before it dumps, or it'll go straight to zero. Of course, the fact that the Banks are now NOT opening on Monday might mean that the bail-in is slated for... Monday. But I doubt it. NBG was the strongest of the four banks in terms of capital ratios, and the EU doesn't even have its claws legally on the banks yet. I don't think the bail-in mechanism is even ready yet. They'll pump first, to let some cronies sell out, then it'll be dump to zero.

Fri, 07/17/2015 - 13:14 | 6324224 Pinto Currency
Pinto Currency's picture

 

 

Bail-in time.

 

Amazing that now that Greece has been thrown another lead life preserver, they still can't float.

What a bunch of losers.

Fri, 07/17/2015 - 13:18 | 6324244 jcaz
jcaz's picture

This isn't 'Nam, Smokey-   there are rules......

Fri, 07/17/2015 - 20:37 | 6325753 palmereldritch
palmereldritch's picture

Over the line!

Fri, 07/17/2015 - 13:22 | 6324262 Bush Baby
Bush Baby's picture

Relax , it's Friday

All will be well by Monday

Fri, 07/17/2015 - 14:31 | 6324519 The Big Ching-aso
The Big Ching-aso's picture

Well at least nobody AFAIK peed on anyone's rug, man. That just wouldn't stand ya know.

Fri, 07/17/2015 - 12:58 | 6324173 KnuckleDragger-X
KnuckleDragger-X's picture

'Fix' has many alternate definitions and I wonder which one they are using, the steer creation one or the mafia one?

Fri, 07/17/2015 - 13:41 | 6324336 Squid Viscous
Squid Viscous's picture

why aren't they rioting like in 2009-2010, this is even bigger FU to them - someone must be dumping Xanax in their water

Fri, 07/17/2015 - 13:00 | 6324180 pods
pods's picture

Gonna be Less Than Zero pretty soon.

Let's say NBG is Robert Downey Jr.

pods

Fri, 07/17/2015 - 13:16 | 6324239 FreeMoney
FreeMoney's picture

More like Charlie Sheen....

Fri, 07/17/2015 - 13:01 | 6324184 cnmcdee
cnmcdee's picture

They will seize it. But the law of unintended consequences will trigger parallel bank runs all over the EU especially as soon as zerohedge reports bank x y or z is technically insolvent.  And the federal reserve will let them sink as they are under the hot seat themselves. no $15 Trillion under the table hand loans

Fri, 07/17/2015 - 13:08 | 6324210 disabledvet
disabledvet's picture

Who will seize it?

There is no "FDIC" in Europe.

The Bank will simply collapse...along with all the other Banks associated with it.

Bond market might seize up too. If more stock exchanges start seizing up could get "flash crashes" in sovereign debt actually."

Fri, 07/17/2015 - 13:03 | 6324192 papaswamp
papaswamp's picture

Come on..break below .85....I need some good carnage today.

Fri, 07/17/2015 - 13:04 | 6324194 Irishcyclist
Irishcyclist's picture

Sorry for being stupid but what is an ADR?

Fri, 07/17/2015 - 13:08 | 6324206 EscapeKey
EscapeKey's picture

american depository receipt

Fri, 07/17/2015 - 13:28 | 6324281 malek
malek's picture

I'm sure that totally answered all his/her questions lol

ADR in laymen's terms = something listed on an US stock exchange that (tries to) copy a real stock from a foreign exchange. Be aware of the additional counterparty risk (and others), as the issuer of that ADR is a complete separate entity form the underlying stock issuer.

Fri, 07/17/2015 - 13:28 | 6324282 Irishcyclist
Irishcyclist's picture

Thanks EK. & Malek.

Fri, 07/17/2015 - 13:06 | 6324195 ZerOhead
ZerOhead's picture

OT... speaking of plunging... temperatures are plunging in new South Wales Australia. Nice picture here of kangaroos in the SNOW. Last time there was snow recorded there was 1836.

Spoiler Alert: It's all because of Global Warming

http://www.msn.com/en-ca/weather/topstories/just-a-kangaroo-in-the-viney...

 

Fri, 07/17/2015 - 13:07 | 6324204 VWAndy
VWAndy's picture

 Technocrat take over on deck as soon as the SD boxes are cleaned out.

Fri, 07/17/2015 - 13:10 | 6324217 Winston Churchill
Winston Churchill's picture

Someone needs to find out the wait time for locksmiths in Athens.

Thats when the banks will reopen.

Fri, 07/17/2015 - 13:11 | 6324220 Squid Viscous
Squid Viscous's picture

Goldman buyout in 3..2...1 they already own Greece might as well make them solvent

Fri, 07/17/2015 - 16:54 | 6325085 englishvinal
englishvinal's picture

Goldman?... I think not.... that is not where the REAL money (gold) is held any more. Try China and Russia WILL step in and buy the infrastructure of Greece. The IMF is scratching the bottom of the barrel right now.. they NEED the $$$.... Germany is not in that great a shape either.. and they WANT their money otherwise Merkle would not have taken such a brutal hard line with Greek Debt. 

I see this as one of the biggest "back door deals" that has gone down in decades.... every since Reagn and Slimy Leo Wanta destroyed the USSR ruble.. and then the oligarchs stepped in and BOUGHT Russia for pennies on the dollar...

   .....  became fat, arrogant, rich as Midas.... until that short balding little man named Valdimir Putin came out of seemingly nowhere... and exposed their scam... and EXported them.  Does anybody think that Putin has forgotten that?... He will find a method to pull as many Europeans nations as possible OUT of the EU and into the Euro-Asian mutual Silk Road.

Fri, 07/17/2015 - 13:11 | 6324221 Anunnaki
Anunnaki's picture

Fuck Greece

Fri, 07/17/2015 - 13:17 | 6324243 VWAndy
VWAndy's picture

The squid is on it.

Fri, 07/17/2015 - 13:18 | 6324245 FreeMoney
FreeMoney's picture

They are getting it good and hard right now, with way more to come.

Fri, 07/17/2015 - 13:15 | 6324237 Bunga Bunga
Bunga Bunga's picture

Arrest the sellers!

Fri, 07/17/2015 - 13:24 | 6324270 wmbz
wmbz's picture

Can there be one Greek left that doesn't understand that they have been sodomized by Banksters Inc?

Now Banksters Inc. will just keep jerking your chain....because they can!

Fri, 07/17/2015 - 13:39 | 6324330 Anunnaki
Anunnaki's picture

Will the banks reopen after the bail ins are implemented? If so only a fucking retard would ever put any more Euros into a Greek bank.

Fri, 07/17/2015 - 13:41 | 6324342 Ted Baker
Ted Baker's picture

strange is now 1.01 again

Fri, 07/17/2015 - 14:50 | 6324567 Hongcha
Hongcha's picture

It's the largest bank in Greece.  It's got the name.  They have to do something with the shell, prop it up in some fashion.  Crap shoot if you own the common shares.

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