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European Banks Now At Or Below Short Selling Ban Levels

Tyler Durden's picture




 

When we first commented on our expectations about the "efficacy" of the short selling ban instituted last Thursday, we said: "There are those who say the upcoming short selling ban in all stocks in Italy and France, which according to CNBC will take place as soon as after the close today, or in one hour, will be beneficial to stocks. Then there are facts." And the facts are that one short week after the ban, European banks are already unchanged compared to the day of the ban and in France they are now negative! What next: selling is illegal or "Speculation" is a felony? We expect to find out soon...

 

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Fri, 08/19/2011 - 12:29 | 1577782 achmachat
achmachat's picture

it's ok. we're safe. it's weekend.

Fri, 08/19/2011 - 12:31 | 1577797 maxmad
maxmad's picture

whew!  that one was close!  But now its weekend! 

Fri, 08/19/2011 - 14:36 | 1578334 sunny
sunny's picture

BUT!!!  Monday is just around the corner.  (teeheehee)

sunny

Fri, 08/19/2011 - 16:26 | 1578762 falak pema
falak pema's picture

Palpitating week end of hooking the fish on the bait if you be fishing troll. Or baiting the Hooker at the Hamptons if you be Oligarch.

Fri, 08/19/2011 - 12:29 | 1577784 maxmad
maxmad's picture

Insolvency bitchez!

Fri, 08/19/2011 - 12:30 | 1577791 oogs66
oogs66's picture

idiot politicians and regulators

Fri, 08/19/2011 - 12:32 | 1577813 maxmad
maxmad's picture

But hey, maybe without the short selling ban, these stocks would be half of what they are now!  Its bullish!  Or bull&*it!

Fri, 08/19/2011 - 13:28 | 1578037 accumbens
accumbens's picture

Last week Societe General's CEO blamed "the Daily Mail" for spreading rumors about the insolvency of the bank soon after the French government baned the short selling on the 3 major banks, hoping it will bring confidence back and stop the bloodbath. (In 2006 SG stock was 143 euros, today: 20,87)

Who's to blame now? the weather?

Fri, 08/19/2011 - 12:31 | 1577798 freethinker4now
freethinker4now's picture

Mondieur

Fri, 08/19/2011 - 12:31 | 1577807 Internet Tough Guy
Internet Tough Guy's picture

ECB'S STARK: THIS CHART MAKES BLOOD RUN FROM MY EARS. OH THE PAIN IS TRULY AWFUL. IS IT FIVE O CLOCK YET I NEED A DRINK.

Fri, 08/19/2011 - 12:35 | 1577841 buzzsaw99
Fri, 08/19/2011 - 12:33 | 1577819 alexwest
alexwest's picture

"Never Underestimate the Predictability of Stupidity"

(c) Bullet Tooth Tony. Snatch, movie

 

alx

Fri, 08/19/2011 - 12:33 | 1577823 Cojones
Cojones's picture

In the meantime, Dutch PM demands a Greek Island as collateral for aid. Seriously.

Fri, 08/19/2011 - 12:42 | 1577874 Dick Darlington
Dick Darlington's picture

Seriously? Got any link to the story?

Fri, 08/19/2011 - 12:58 | 1577931 Dick Darlington
Dick Darlington's picture

Thanks! Read some of the comments there. Seems that the dutch people have little sympathy for the europonzi. And that is GOOD.

Fri, 08/19/2011 - 13:06 | 1577956 pods
pods's picture

They may be high, but they ain't stupid!

pods

Fri, 08/19/2011 - 13:30 | 1578041 Sudden Debt
Sudden Debt's picture

Why not ask for the gold as collateral? Did you know they bought 5 metric ton WITH THE BAILLOUT MONEY!!!

 

Fri, 08/19/2011 - 20:10 | 1579541 Koffieshop
Koffieshop's picture

Geenstijl is more infotainment then news. Don't take anything there too seriously.

80/90% if the public here does indeed think that the Greeks can go suck a fat one, however. I saw a poll about that in the newspaper today (De Telegraaf).

Fri, 08/19/2011 - 12:43 | 1577880 Version 7
Version 7's picture

"European banks don't fool Jesus!"

Fri, 08/19/2011 - 12:44 | 1577882 flacon
flacon's picture

Can the Greek government charge property tax on that island? If so, then they should just sell all the land of Greece and demand their pound of flesh every year. Who needs to work to become wealthy - just TAX everyone and every thing and we will all live in a happy utopia of Socialist dreams. 

Fri, 08/19/2011 - 12:33 | 1577824 lolmao500
lolmao500's picture

Duh.

Fri, 08/19/2011 - 12:34 | 1577825 snowball777
snowball777's picture

Knife-catchers will be prosecuted! (or is that persecuted?)

Fri, 08/19/2011 - 12:40 | 1577864 slaughterer
slaughterer's picture

ECB'S STARK SAYS: SHORT SELLERS WILL HAVE TO PAY A 80% TRANSACTION TAX DIRECTLY TO SCHAÜBLE AT THE FINANZAMT ON ALL SHARES THEY SHORT WHEN SHORT BAN LIFTED ON EU BANKS

Fri, 08/19/2011 - 12:44 | 1577889 flacon
flacon's picture

TAXATION, the way to prosperity. 

Fri, 08/19/2011 - 13:45 | 1578103 sitenine
sitenine's picture

Correction: taxation will be referred to as revenue.
Your updated newspeak dictionary is in the mail.

Fri, 08/19/2011 - 12:34 | 1577832 sun tzu
sun tzu's picture

Maybe they can pass a law that bans the longs from ever selling. Once you buy a stock, you own it for life.

Fri, 08/19/2011 - 12:34 | 1577836 maxmad
maxmad's picture

cue the fail sound from price is right...

 

cue the carnival music

Fri, 08/19/2011 - 12:41 | 1577871 Doyle Hargraves
Fri, 08/19/2011 - 12:34 | 1577838 Internet Tough Guy
Internet Tough Guy's picture

ECB'S STARK: TURN THOSE MACHINES OFF. THIS INTERVIEW IS OVER. HULK SMASH.

Fri, 08/19/2011 - 12:43 | 1577881 SeverinSlade
SeverinSlade's picture

Hahahahahaa.

Fri, 08/19/2011 - 12:39 | 1577862 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

I still don't understand how someone can ban "short selling".  Does this mean that they are not allowing options on CDS?  Or options on any index?  Can you buy calls?  Puts?  What are the implications of the "short selling" ban?

Fri, 08/19/2011 - 14:40 | 1578357 slewie the pi-rat
slewie the pi-rat's picture

they were posted when the diff "exchange authorities", after they determined that the "central authority" had no fuking ability to tell the "local" authorities what to do, published them;  i think it was a week ago yesterday.  all the relevant "decentralized and autonomous" authorities got right on it, too! 

kinda like the gas stations on all 4 corners just "happening" to all change their prices at the same time to the same numbers, determined by "the market" for gasoline at the crossroads.

althought in the case of the short-selling ban, it was indicated that "we" should feel "safer as investors" because they were in the front alley deciding what to do to protect themselves and their bosses (aka "the public") instead of the back alley, where they usually cook shit up, which may explain why there is a "crisis" for them in the first place, at least partially, one might s'pose.

doncha think?

Fri, 08/19/2011 - 12:40 | 1577868 Dick Darlington
Dick Darlington's picture

Common sense 1 - central planning 0.

What's next? Law that says equities can only go up?

Fri, 08/19/2011 - 12:41 | 1577872 AldoHux_IV
AldoHux_IV's picture

selling is illegal or "Speculation" is a felony? We expect to find out soon...

Don't give 'em any ideas-- they actually could try to pull this off.

Fri, 08/19/2011 - 12:44 | 1577886 Azannoth
Azannoth's picture

MOODY’S ANALYST BREAKS SILENCE: Says Ratings Agency Rotten To Core With Conflicts, Corruption, And Greed

http://finance.yahoo.com/blogs/daily-ticker/moody-analyst-breaks-silence...

Fri, 08/19/2011 - 13:13 | 1577984 espirit
espirit's picture

Who could have seen that one coming?

Fri, 08/19/2011 - 16:31 | 1578786 falak pema
falak pema's picture

Business Insider tips its hat at ZH. For the video on Perry and Bofa. The rats start ratting on the whistleblower shenanigans. To think that Fitch gave the FED a triple A and S&P is being taken through the wringer by the SEC...whoosh...the boomerang is deadly.

Fri, 08/19/2011 - 13:12 | 1577976 espirit
espirit's picture

Uh Oh, FED better float some more cash to the Swiss banks until the oligarths can convert to PM's.

sarc on/off, I forget which. Sad isn't it?

Fri, 08/19/2011 - 13:24 | 1578022 YesWeKahn
YesWeKahn's picture

Instead of banning short, they should disallow people from buying these stocks, lol.

Fri, 08/19/2011 - 14:26 | 1578291 0ppenheimer
0ppenheimer's picture

I understand why politicians beholden to foolish voters would pander to their (lack of) knowledge on the impact of short selling.

Is it too hopeful of me to assume that securities regulators recognize the impotence of short bans though?

Fri, 08/19/2011 - 14:53 | 1578400 Joe Ploppy
Joe Ploppy's picture

CNBS's Simon Hobbs went ballistic when Jim Cramer actually suggested the European Banks are at risk of a meltdown.  Recall how optimistic Jim Cramer was on Bear Sterns, so you know it's real bad when he starts being pessimistic on European Banks.  Hobbs was furious at the thought that Europe could meltdown, especially coming from Cramer (who loved Bank of America too). 

You know it's bad for a financial institution when even Cramer won't be willing to put a buy rating on it.

http://www.mediaite.com/tv/watch-jim-cramer-freak-out-on-cnbc-cohort-simon-hobbs-as-bank-stocks-tank/

 

 

 

Fri, 08/19/2011 - 16:40 | 1578726 bid the soldier...
bid the soldiers shoot's picture

This is a classic pendulum swing from one extreme to another. It seems like only a couple of days ago you could sell short without an uptick. Soon short selling will be verboten.

Don't worry though, the pendulum will settle in the middle. Short selling on Mondays, Wednesdays and Fridays. Short covering on Tuesdays and Thursdays. Saturdays synagogue, golf or the adult book store.

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