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EU Commission Confirms ESM Loan Will Have Senior Preferred Creditor Status
And crushing all hopes of pari passu treatment for Spanish bondholders, is this latest confirmation from the EU Commission.
Via Market News:
The European Commission will conduct its own assessment of the Spanish banking sector before deciding what conditions should be set in exchange for financial support from Eurozone governments.
...
Ultimately it would be the European Commission making the recommendations and the Eurogroup taking the decisions, the spokesman said.
He said it was too early to speculate on how exactly the aid would be delivered or how much interest Spain would pay, since that would depend on the exact structure of the aid and on the prevailing market conditions.
Any aid that might come from the European Stability Mechanism, which is expected to start work next month, would enjoy a preferred creditor status second-only to the IMF, the spokesman confirmed.
And there you have it (and hopefully this is not a harbinger of imminent IMF intervention as well. That would not go over too well in Spain).
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Subordination is bullish.
All your base are belong to us.
Spanish chics have nice bases ... just sayin.
When they're 18.
Dangerous to squeeze that bulls testicles.
Debt subordination summarized...
http://www.youtube.com/watch?v=vAvaWrOJcng
WE HAVE THE MONIIEEEEZZZZZZZZZ NOW, WE ARE ALL SET!!!!!!
This is the legal subordination, and it is not "voluntary" then CDS contacts have to be triggered.
Right?
You are assuming that the capital markets still exist, and that law still applies.
I want to know the reaction in Greece. The Spanish bailout is definitely a boon to Alexis Tsipras the Extortionist. However he is eerily quiet. I haven't seen any of his comments on it till now.
Tsiparas is the extortionist?
How about Samaras who is now saying that leaving the euro will not allow them to negotiate terms like Spain.
Wait a minute isn't that anti bailout as well since any renegotiation is in fact breaking the bailout terms? Isn't that the same thing Tsiparas is asking for? Reneogtiation of aid is what he was pushing and he has in fact said he wants to stay in the euro.
Remind me again why we have laws. It's all a little foggy right now.
We don't which is why this is a stupid article and indeed the Spanish are correct in saying this money is lent "without condition." in other words the Germans and French have already made clear they will not pay out the CDS...well..what BINDING conditions are attached to this money then? Obviously "only what the market will bear." subordination assumes a court system. Where is this court system you speak of? Only the USA has such a system...with a HISTORY to back it up I might add.
umm it's called English law for a reason
ha, ha "only the US has such a system...where is this court system you speak of?" Yup, ask Corzine and Abacus. What baloney, the US court system is even more skewed than the Euro one as it protects PRIVATE fat cats, whereas in continental Europe it is a double standard and skewed to central government control. Voila! Raison d'état.
For English law see my post here : 2514030
Only the USA has such a system...
Tell it to the Chrysler Senior Secured Bondholders.
Tell it to anyone in the US earning 0.5% interest on savings.
Tell it to all involved in Fraudclosure, to all of the judges who won't allow fraudclosure evidence into their courts, or who have MERS as the beneficiary of their mortgage note.
Shall I go on?
You are a dumass.
"If a window was broken or a drain was blocked up, someone was certain to say that Snowball had come in the night and done it, and when the key of the store-shed was lost, the whole farm was convinced that Snowball had thrown it down the well. Curiously enough, they went on believing this even after the mislaid key was found under a sack of meal."
- George Orwell, Animal Farm
One of my favorite books and sadly very prophetic. As for the spanish bailout, it seems some countries are more equal than others. Just ask Ireland and Greece.
Remind me again why we have laws.
There needs to be a market for ink in between fiat printings.
Remember....
Laws are for Pee-ons.
"preferred creditor status second only to the IMF" aka: Hooray for me and Fuck You.
The IMF won't go over well in Spain? How about here in the US? Our broke asses can't afford this bullshit but that doesn't matter in global takeover matters.
You are the IMF.
Very simply explained.
The German people will be comforted to know that the German Banks are now on much more solid financial footing.
Of course that involves passing all that toxic debt to the German people, but who cares? We learned in the US TBTF episode that the banks and the fat cats are all that really matters.
Now cut out all this useless thinking and get back to work!
Those bloody fools! http://www.youtube.com/watch?v=2yfXgu37iyI&feature=related
Any aid that might come from the European Stability Mechanism, which is expected to start work next month, would enjoy a preferred creditor status second-only to the IMF, the spokesman confirmed.
They see me rollin ...
They hatin ...
Patrolling they tryin to catch me ridin dirty
Tryin to catch me ridin dirty
Tryin to catch me ridin dirty
Tryin to catch me ridin dirty
Tryin to catch me ridin dirty
My music so loud
I'm swangin
They hopin that they gon catch me ridin dirty
Tryin to catch me ridin dirty
Tryin to catch me ridin dirty
Tryin to catch me ridin dirty
Tryin to catch me ridin dirty
Why are soverign bonds including US bonds a safe haven again? Can someone subordinate your physical gold?
Yes
http://en.wikipedia.org/wiki/Executive_Order_6102
Bruce Krasting warned us on this and it was very prescient of him!
preferred creditor status, I use to know what that meant!
Tidbit from Italy:
The website of the Bank Network.
Network Investment Bank has suspended payments, causing great inconvenience to customers. STOP FOR A MONTH. The institute, in receivership since last November, announced that on May 31, the commissioners, "with the approval of the Monitoring Committee and with the approval of the Bank of Italy, have decided to suspend the payment of liabilities of any kind ‘for a month. The stop, communicated through the website of the bank, does not include client financial instruments. It was emphasized that "the measure was needed to tackle the difficult situation of the bank. angry depositors. To the rescue – in the few lines we read online – have stepped forward and the group Sim Consultinvest Savings Bank of Ravenna, but in the meantime, depositors are furious . For all spoke Massimo, police in Milan with his wife and two daughters in Messina: "Nobody told me anything and today (June 4), when I went to pay the mechanic, the ATM was not working. Even the credit can do. ‘ "MI HAVE REMOVED THE MONEY." "Actually," he added, "I have taken my money. In the book I have only 20 euros in cash and the escrow account where the salary is credited to me, how do I make ends meet? ". And to think that Bank Investment Network has as shareholders the names of the first floor of the financial world: Aviva Banco Popular De Agostini and Sopaf. "GUESTS OF PERSONS FINANCIALLY ADVANCED." The customers of Bank Network, financial sources have noted, is composed largely of the "financially sophisticated individuals" able to understand the situation and wait for the definition plan of action by the group and Sim Consultinvest Savings Bank announced the release of Ravenna as special commissioners
kleptoponzocracy?
ponzikleptocracy?
bureaukleptocponzihipocracy?
You have to be fucking kidding me right?
Subordination = subjugation
It absolutely means subjugation and to see why we need to revisit the unfucking believeable terms of the ESM. Recall a post several months back by Tyler that spells out the ESM proposal terms (no link). It is nothing less than complete elimination of national soveriegnty by any nation that takes money from the ESM. It is an iron clad agreement to allow Brussels to run the nation and control government policy. Why these terms are not being brought forth and discussed on a daily basis by the few politicians opposing bailouts is astonishing.
Agree 100%
And as to why nobody is discussing these terms, is because the oligarchs far outnumber the dissenters. The political and financial gains for them far outweigh the dissenters pleas. Also, democracy and the will of the people has been in effect, neutered.
Can anyone please explain why the banks need even more money?
They were able to fill up on 3 year 1% as much as they wanted?
Wasn't that enough?
I really do not get it. How big is this hole?
the whole goes on forever, and the party
never ends. there is no spoon, there is
no hole. they are just stealing the money
now, in the chaos and confusion, praying that
no one will claw all the assets back when
they make the paper money entirely worthless.
.
Robert Earl Keen - "The Road Goes On Forever" Live From Austin Texas
http://www.youtube.com/watch?v=oMjWV2lqlqQ&feature=related
bank run. ahhmm beer run.
http://www.youtube.com/watch?v=pyCPhIjmk-s
It's just an oral acceptance at this point. Don't mean anything :)
European Commission, Eurogroup, Eurozone, European Central Bank… they are all one thing. They are all creatures of the international bankers and if you are a key bank, like Deutsche and Goldman and Morgan, it’s still all the same thing.
Here is a view of the procedure from an Ambrose Evans Prtichard blogger, drjonathanwilson, on June 7 which explains who eventually pays in this banker-made crisis:
Sounds like the same old evil to me!
The refinancing by the European rescue fund positions by private creditors is not only a refinancing backed by the Spanish state, but this loan of 100,000 million collection takes priority over the rest of the Spanish public debt (just behind which to grant credits to IMF)
http://agstock.blogspot.com.es/
Reminds me of the old mamas and pappas song, "And the Beat Goes On" What a fricking goat rope, and coming to the USA after the elections.
sonny & cher (sorry)
same band for the recording, the "wrecking crew".
for sonny and cher and the mammas etc....
.
http://en.wikipedia.org/wiki/The_Beat_Goes_On
"The backing track for the song was recorded using the renowned group of Los Angeles session musicians who are now collectively known as "The Wrecking Crew". "
weird but not so much. i think it was a contract and money thing as well as a "quality" control issue,
or was that quantity distribution issue?
.
the wrecking crew also was the band on california dreamin'
among many other recordings. it was almost like
one band, one world, one radio out of l.a. for a bit there.
hmmm.
The Mamas & The Papas: California Dreamin'
http://www.youtube.com/watch?v=dN3GbF9Bx6E
.
Sonny & Cher The Beat Goes On
http://www.youtube.com/watch?v=umrp1tIBY8Q
same musicians/band. minus the lead vocals.
so they say?