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Bankia Gets 'Pre-Bailout' Bailout "Immediately" As Bad Loans Jump 44%

Tyler Durden's picture




 

With Spain's new-found belief in its own incompetence omnipotence, they are now throwing bad money after bad in advance of the European bailout by pre-bailing out (bridge recap?) Bankia via the FROB (and it seems like they are in a hurry):

  • *SPAIN'S FROB SAYS TO INJECT CAPITAL IN BFA-BANKIA IMMEDIATELY

which makes sense given that:

  • *BANKIA GROUP BAD LOANS RATIO 11% IN JUNE VS 7.63% IN DEC. (a 44% rise!!)
  • *BANKIA 1H NET LOSS EU4.45 BLN VS EU201 MLN PROFIT A YR AGO

The bottomless pit will all be 'fixed' though by October (just like Dexia was?)

  • *BANKIA CHAIRMAN SAYS SPAIN, EU COMMENTS ARE `GREAT SUPPORT'

and just as jawboning helps:

  • *EUROGROUP WELCOMES BRIDGE RECAPITALIZATION OF BFA-BANKIA
  • *EUROGROUP SAYS BANKS BACKSTOP IN PLACE IF INTERVENTIONS NEEDED

Sublime to ridiculous... Is this just another move in the negotiation as now Spain has 'more' vested interest and therefore 'more' mutual destructive power if a banking union or mutualized benefit is not realized...

The Tragedy of the Euros - he who "prints most, deficit spends most, crashes" first wins...

 

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Fri, 08/31/2012 - 12:55 | 2753130 Let The Wurlitz...
Let The Wurlitzer Play's picture

To support Bankia and the Euro I personally will purchase an undisclosed and possibly unlimited amout of their debt.

 

Fri, 08/31/2012 - 13:00 | 2753156 fireangelmaverick
fireangelmaverick's picture

*BANKIA CHAIRMAN SAYS SPAIN, EU COMMENTS ARE `GREAT SUPPORT'

Like a push-up Bra?

Fri, 08/31/2012 - 15:52 | 2753543 slewie the pi-rat
slewie the pi-rat's picture

"they" need to re-capitalize this mess for "thePlan":>

instead of a "bad" bank "they" are gonna go for LGBT management and hope for the reach-around-turn-around capert-munching miracle of moBail

Fri, 08/31/2012 - 13:01 | 2753161 Mark Carney
Mark Carney's picture

Really understand how RBC could have completely bouightt Dexias securities division.......stupid is as stupid does.

Fri, 08/31/2012 - 13:03 | 2753163 resurger
resurger's picture

You get free towel sir,

once you check in, you cant check out.

Fri, 08/31/2012 - 13:22 | 2753225 LongSoupLine
LongSoupLine's picture

I will back Spain tonight by making sangrias and counting my silver.

Fri, 08/31/2012 - 13:32 | 2753262 FL_Conservative
FL_Conservative's picture

Tell them to first make sure they set aside the money they need to contribute to the ESM so it can go operational.  <\sarc>

Fri, 08/31/2012 - 14:27 | 2753429 ToNYC
ToNYC's picture

I can get their debt at a discount and deliver via the Colorado river as it flows into Mexico City. I can alternately pay you over there by that Dark Star who fell in the Dark Pool having lost his balance tripping over his bazooka.

Fri, 08/31/2012 - 16:17 | 2753726 No Euros please...
No Euros please we&#039;re British's picture

I believe you and it will be enough.

Fri, 08/31/2012 - 12:56 | 2753134 DoChenRollingBearing
DoChenRollingBearing's picture

We are going to Italy very soon.  Just keep it together guys, just another few weeks...  Then let 'er rip.

Europe looks to go down first.  Our turn will come soon enough.

Fri, 08/31/2012 - 13:36 | 2753279 Bam_Man
Bam_Man's picture

Me too. I'm going to Tuscany for the grape harvest at the end of September. I'm hoping that they can hold things together with more non-stop bullshit until I get back.

Fri, 08/31/2012 - 14:16 | 2753402 withnmeans
withnmeans's picture

If you have never been to Italy watch out for the beggars "and thieves", although I never had a problem with the thieves myself. Oh yes, the beautiful architecture, fields, the smells of the country side, however if you have travelled there recently their railway system is a total disaster, infrastructure is in bad shape, and the people just look beat down.

Otherwise have fun, drink some Chianti for me, best to rent a car if you plan to travel around. Love the country "and the old world people", just be aware.

Truthfully I would of thought Italy would have collapsed before Spain started to.

Anyway, Cheers

Fri, 08/31/2012 - 12:56 | 2753135 SwingForce
SwingForce's picture

Quick, need antidote, too much bullshit....ahhh, just read Mark Grant's latest. I feel better now.

Fri, 08/31/2012 - 12:56 | 2753140 PontifexMaximus
PontifexMaximus's picture

Seems that problems can be solved by making comments. Well done. Who is paying me telling rubbish??

Fri, 08/31/2012 - 12:57 | 2753141 Oh regional Indian
Oh regional Indian's picture

It's finally starting to rain.

In Spain.

By the way, how many people knew that Al Gores Fund Manager is a guy by the name of Jack Blood?

Blood and Gore?

Crazy, eh?

Ole!

ori

Fri, 08/31/2012 - 13:11 | 2753198 resurger
resurger's picture

fucking Epic roi, where can i sign the investment plan application!!

Fri, 08/31/2012 - 13:18 | 2753213 Oh regional Indian
Oh regional Indian's picture

:-) Epic freudian slip right there too by you resurger! 

roi

Fri, 08/31/2012 - 12:58 | 2753146 Didn't build that
Didn&#039;t build that's picture

they didn't build that...

Fri, 08/31/2012 - 12:59 | 2753149 bagehot99
bagehot99's picture

What are they offering as collateral while their loan books truns to confetti? The office furniture?

Fri, 08/31/2012 - 13:42 | 2753303 Zwelgje
Zwelgje's picture

Penélope Cruz

Fri, 08/31/2012 - 15:24 | 2753575 machineh
machineh's picture

This changes everything!

Fri, 08/31/2012 - 12:59 | 2753152 mckee
mckee's picture

I must have taken the wrong fk'n pill this morning

Fri, 08/31/2012 - 13:05 | 2753157 Cult of Criminality
Cult of Criminality's picture

Didnt build that

The Freemasons did

JUMP ...........Van Halen

 

http://www.youtube.com/watch?v=k8LdRJqjjRM

Fri, 08/31/2012 - 13:01 | 2753159 resurger
resurger's picture

Just fill that bottomeless pit with towels

Fri, 08/31/2012 - 18:39 | 2754022 slewie the pi-rat
slewie the pi-rat's picture

how is cotton doing, return-on-investment-wize this year?

Cotton #2 Weekly Commodity Futures Price Chart

can you find the place in time on this chart when S&P downgraded all US debt? 

can you find WHEN "operation twist" begins?

are you sure you have been given all the info about the "effects" of zirp?  what "else" do you see?   paper towels?  real towels? 

cotton is grown where?  are there geo-politics involved? a shortage of cotton?  a shortage of paper?  a shortage of bullshit? 

even spidey-towels come from the sun

so i hope yer "abyss" doesn't leave you all wet from over-exerting yourself with your your friends from the drama school today...

Fri, 08/31/2012 - 13:05 | 2753169 TonyCoitus
TonyCoitus's picture

toga, Toga, TOga, TOGa, TOGA!!!!!!!!!!!!!!!!

 

Fri, 08/31/2012 - 13:06 | 2753179 Dr. Engali
Dr. Engali's picture

What I don't get is why there is anybody besides the robots left in these markets at all.

Fri, 08/31/2012 - 13:09 | 2753187 surf0766
surf0766's picture

Most are babyboomers who still haven't figure out they have been taken to the cleaners and still believe they will not have to work again.

 

 

Fri, 08/31/2012 - 15:58 | 2753611 slewie the pi-rat
slewie the pi-rat's picture

our kids own a LOT already too ya know!

stocks, PMs, artwork, toys, music, nice cash flows from pretending to work;  RE, rental properties; time-shares too?

and our grandchildren?

ask us about our honorStudents at pre-school

go ahead punks!  make our day!

how old are the parents of you toy-boys?

my dad is almost 100

and he's doing great too!

thank you fuking losers soooo much for asking, too!   L0L!!!

look at the lineup of people who can't think straight here today!

must be time to pretend everybody should shit their diapers in fear again?  Hahahaha!  what a buncha ingnorant fuking losers!

Fri, 08/31/2012 - 13:09 | 2753184 Cognitive Dissonance
Cognitive Dissonance's picture

This is just a shot of Novocain to dull the pain until the fiat IV can be set up. Can't have the patient die before you kill him by lethal injection....right? 

Fri, 08/31/2012 - 13:11 | 2753195 Cult of Criminality
Cult of Criminality's picture

Dr Engali

It is other peoples pension funds.

No loss to the people that do not actually own the funds.

You know segregated funds ,rehypothecated funds,stolen funds.

robots do not care.Any humans not in the club yes,that would be strange.

Fri, 08/31/2012 - 13:17 | 2753211 negative rates
negative rates's picture

Ah, the rain and pain in Spain falls mainly on the plaines, unless it falls in Maine!

Fri, 08/31/2012 - 13:35 | 2753276 JohnKozac
JohnKozac's picture

Bad loans AND Banker Bonuses about to jump 44%.

 

What a world!

Fri, 08/31/2012 - 13:53 | 2753321 madcows
madcows's picture

If I had a mortgage in Spain, I think I'd stop paying too.

Fri, 08/31/2012 - 14:12 | 2753389 cebri88
cebri88's picture

4.4 billion ¡¡¡ 

Let it FAIL ¡ 

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