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France Resets The Rumormill: "No Plan To Recapitalize Banks" ... Until Tomorrow

Tyler Durden's picture





 

It's just getting plain idiotic in France and Europe. After last week the global stock market soared (then crashed) on two separate micro-occasions (since everything is now measured in HFT time) following rumors first from the FT then from someone we don't even remember who, that French banks would be recapitalized, here comes the strawman reset for the next 24hours. From Reuters: "French banks are solid and can face any risk from their exposure to Greek sovereign debt, the head of the Bank of France, Christian Noyer, told a French newspaper, adding that there was no secret plan in place to recapitalise them." Well, no, they are not. Just ask the Chinese. Or Siemens. But at least this latest refutation gives France hope that when BNP, SocGen and CA are all down 15%, leaking this same rumor for the third time, may provide a short-term temporary boost. Alas, not even the vacuum-tube controlled market is that dumb.

From Reuters:

Noyer, who is also a member of the European Central Bank's governing council, said that French banks were well capitalised and could withstand whatever scenario plays out concerning Greek debt with profits made in less than a fiscal half-year.

 

"They are very solid," he told Le Journal du Dimanche (JDD) in an interview published on Sunday. "They have a solid capital base, comparable to other European banks and they are profitable ... None of them is hiding any toxic assets."

 

Noyer was responding to a report in the JDD saying that French officials were working to establish a contingency plan to inject 10 to 15 billion euros into French banks in the event of them requiring recapitalisation.

 

A sharp drop in the share prices of French banks since the beginning of the summer has led to speculation that the French state may have to intervene and recapitalise them, in the same way that other governments were forced to help their lenders during the original global banking crisis.

 

Both BNP Paribas and Societe Generale have pledged to sell tens of billions of euros of assets to free up capital and a source in Qatar said last week that BNP Paribas was in talks with the Gulf state over a possible stake sale. The bank has categorically denied the existence of such talks.

 

Asked to comment on reports about a plan to recapitalise French banks, Noyer said: "There is no plan, and we don't need one".

And here is the loophole left for 24 hours from now, when Europe is about to close again (and one of these times, if the Eurocrats continue with this idiocy, permanently).

Noyer added that if banks expressed the need for it, or in the case of an "extraordinary event", they could appeal to a public support mechanism created in 2008.

 

The French government set up a plan that year that made 360 billion euros available to banks, 40 billion of which would go toward strengthening their capital base and 320 billion of which would help them refinance via a public entity called the SFEF.

Well, that's just great work there Noyer. This time next week we will have fact, not rumor, that France has been forced to inject (thanks to evil, nasty speculators) E360 billion into its financial sector, now that the market and the bond vigilantes know that it can push France that much more without committing M.A.D.

 


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Sun, 09/25/2011 - 09:08 | Link to Comment Firing Pin
Firing Pin's picture

I wonder how long before gold starts to soar again. Man, if I had 600 oz of gold and a free weekend, I'd...

Sun, 09/25/2011 - 09:22 | Link to Comment Crisismode
Crisismode's picture

If you had 600 oz of gold you wouldn't be announcing on a medium that can trace your IP.

Sun, 09/25/2011 - 09:34 | Link to Comment flacon
flacon's picture

If you want to understand Russia's take on all this, please watch the following video:

 

Russia's Finance Minister Aleksey Kudrin discussed with RT Russia's plans of dealing with the world's economic challenges.

http://www.youtube.com/watch?v=B_Wj2INeYHQ

Sun, 09/25/2011 - 10:02 | Link to Comment BigJim
BigJim's picture

I fell asleep about half-way through. It's pretty much the boiler-plate 'everything is fine' with our holdings of foreign debt, isn't it?

Sun, 09/25/2011 - 10:10 | Link to Comment eisley79
eisley79's picture

If he had 600 ozs of gold, there would already be a record of him buying it, and if he really cared about zerohedge having his IP he could just use proxies...

Sun, 09/25/2011 - 09:37 | Link to Comment Firing Pin
Firing Pin's picture

I'm on 4 layers of Tor bitches! If you trace me back, it brings you to an empty 6 pack in a deserted canyon in the Badlands.

Sun, 09/25/2011 - 10:34 | Link to Comment Weisbrot
Weisbrot's picture

 

 

if TARP had been used for its STATED PURPOSE Perhaps things would not be this way now

 

this is the way of corruption at the highest levels

 

 

Sun, 09/25/2011 - 09:23 | Link to Comment GeneMarchbanks
GeneMarchbanks's picture

... be taking a piss into the collective mouths of central bankers?

Sun, 09/25/2011 - 09:31 | Link to Comment BorisTheBlade
BorisTheBlade's picture

... call yourself The Magnificent Wizard of 600 oz?

Sun, 09/25/2011 - 09:08 | Link to Comment Cassandra Syndrome
Cassandra Syndrome's picture

following rumors first from the FT then from someone we don't even remember who

 

LOL!

Sun, 09/25/2011 - 09:15 | Link to Comment Earl of Chiswick
Earl of Chiswick's picture

and here is the clusterfck that his the Banque de France (something straight out of Banzai's genius  mind by the looks of it)

 

http://www.banque-france.fr/gb/instit/histoire/chart.htm

 

and this (so don't fck with them)

The Banque de France was created on 18 January 1800 by Napoléon Bonaparte

http://www.banque-france.fr/gb/instit/histoire/histor1.htm

and this, which says it all

The Banque de France opened for business on 20 February 1800, even though all of its capital had not yet been paid up.

Sun, 09/25/2011 - 09:28 | Link to Comment GeneMarchbanks
GeneMarchbanks's picture

If I recall, we recently had "Stress tests" for European banks, we got a green light. All is well, sure a couple undercapitalized Greek, Portugese banks but we're looking good. Now, if they come out and openly admit that they're shoveling digi-cash at the French banks it would probably only add to the already panicky 'markets', no?

Something stinks and it's much worse than that cheese those bastards eat...

Sun, 09/25/2011 - 09:33 | Link to Comment Fips_OnTheSpot
Fips_OnTheSpot's picture

This "stress" excluded a greek default. Figures, eh?

Sun, 09/25/2011 - 09:47 | Link to Comment Bicycle Repairman
Bicycle Repairman's picture

"Stress tests"

Shssssssh!  That didn't happen.

Sun, 09/25/2011 - 13:24 | Link to Comment Landrew
Landrew's picture

You sir, have the palate of a pig! French cheese is of the best of the world! Maybe you should put down the smokes? Say what you will about the French government, banking industries, but to insult the wine and cheese you would appear to be an imbecile!

Sun, 09/25/2011 - 09:17 | Link to Comment ISEEIT
ISEEIT's picture

Interesting article concerning the EUR and the FT.

http://www.telegraph.co.uk/finance/comment/8780075/The-great-euro-swindl...

Sun, 09/25/2011 - 09:42 | Link to Comment Mr_Wonderful
Mr_Wonderful's picture

LOL

 

The central historical error of the modern Financial Times concerns the euro. The FT flung itself headlong into the pro-euro camp, embracing the cause with an almost religious passion. Doubts were dismissed. Here is the paper's Lex column on January 8, 2001, on the subject of Greek entry to the eurozone: "With Greece now trading in euros," reflected Lex, "few will mourn the death of the drachma. Membership of the eurozone offers the prospect of long-term economic stability." The FT offered a similarly warm welcome to Ireland.

Sun, 09/25/2011 - 10:06 | Link to Comment BigJim
BigJim's picture

The FT is the Establishment rag of choice.

Column after column of fat, greasy-looking money-changers praising past government intervention and regulation, and constantly calling for more.

The front-page is useful for its news content, but the analysis is just standard Keynesian swill (with the honorable exception of a few writers like Gillain Tett)

Sun, 09/25/2011 - 11:30 | Link to Comment Dick Darlington
Dick Darlington's picture

Let's consider the remark made by Danny Alexander, Chief Secretary to the Treasury, that those he labelled as anti-European isolationists or nationalists were "enemies of growth".

Hehee, sounds like Finland's prime minister Jyrki Katainen, eurofanatic to the bone.

Sun, 09/25/2011 - 09:20 | Link to Comment BlackSea
BlackSea's picture

Ironically "Noyer" means "to drown" in French....

Sun, 09/25/2011 - 09:32 | Link to Comment Zero Govt
Zero Govt's picture

No kidding?!!

In Latin 'Bernanke' means constant fuck ups in ever decreasing circles

Sun, 09/25/2011 - 09:38 | Link to Comment BorisTheBlade
BorisTheBlade's picture

In Latin 'Bernanke' means constant fuck ups in ever decreasing circles

Who knew Latin had an expression for a downed helicopter long before it was invented.

Sun, 09/25/2011 - 09:33 | Link to Comment falak pema
falak pema's picture

Noyer : to drown, also, the walnut tree..like the family of oak, etc. used for making tables, furniture. 

So MR Noyer has double meaning : is he solid or is he drowning?!!

Sun, 09/25/2011 - 09:40 | Link to Comment Dick Darlington
Dick Darlington's picture

Or it could also mean that he's a plant. Vegetative state of mind.

Sun, 09/25/2011 - 09:45 | Link to Comment Cheesy Bastard
Cheesy Bastard's picture

It means he's a witch.  Burn Him!

Sun, 09/25/2011 - 09:21 | Link to Comment Fips_OnTheSpot
Fips_OnTheSpot's picture

WE ARE SO SAFE!! Except when we ARE NOT.

 

Bottom line.

Sun, 09/25/2011 - 09:35 | Link to Comment Zero Govt
Zero Govt's picture

I wish to return to a place called 'Sanity' ...away from retail bankers 30 years of leveraged 30/1 money fabrication (fraud), centralised monopoly money counterfeiting (more theft, more fraud) and this whole house of credit (debt) cards collapsing and what the delusional morons in 'authority' cluck around like headless chickens trying to repair (it's unrepairable, got it?)

I've found that place, thy name is Gold and Silver.. Thank you for some real "stability", not the one Trichet, Bernanke and Euro/US politicians windbag about and is most definately the most unstable place anyone could be right now!!!

The lunatics have taken over the asylum, let the lunacy continue ...got Gold, then get some popcorn and enjoy the asylum blowing up around you

Sun, 09/25/2011 - 11:30 | Link to Comment BigJim
BigJim's picture

Now that the action has calmed down a bit, I think TPTB may have fucked up royally with their recent pummellings of gold and (particularly) silver.

Yes, I understand they want to erode PM's reputation of being safe-havens. I think they think: "if we can manipulate the price down now, when everyone in authority is saying the economy is on the brink of collapse, then, when Greece defaults, and the world doesn't end, PM selling pressure will increase."

But the fundos haven't changed, and we're down 40% on Ag since May. Unless they can magic up a shedload more physical silver, just looks like a buying opportunity to me.

Sun, 09/25/2011 - 09:29 | Link to Comment Dick Darlington
Dick Darlington's picture

It's just getting plain idiotic in France and Europe.

Tyler, you are way too kind in describing the situation in France and in Europe.

What comes to Noyer he just plays by the rules set out by the EU-dictatorship. 1) Lie 2) Deny 3) Lie more 4) Deny everything and say we are fine. Then comes the "crisis management" part: 5) Panic 6) Make fatal mistakes.

In Europe next year there will be something like 125 bn government guaranteed bank bonds including the ones issued under France's SFEF-vehicle coming due. One just wonders what's gonna happen to France's AAA-rating (lol) when the grim reality really starts to kick in. In addition to the massive toxic banks France's public finances are a mess. Even if Noyer still lies and denies everything we can say good bye to France, the monster CDO, and eurozone. Happy Sunday!

Sun, 09/25/2011 - 12:52 | Link to Comment GottaBKiddn
GottaBKiddn's picture

Each day the pattern of collectivism moves the banks of the world closer to nationalization. The bankers have been given more than enough rope to hang themselves, by proving that they are unfit to be trusted with global finance. Soon they will be controlled by fewer and fewer of the elite, those who know what is best for us.

Sun, 09/25/2011 - 09:30 | Link to Comment ArkansasAngie
ArkansasAngie's picture

I wish they'd just quit trying to make this in my best interests.

That's the rub ... it isn't in my best interest.

They want a bailout so bad they can taste it ... but to bail themselves out again would be the straw that broke the camel's back.

No more bailouts.  This is about the rich and their cohorts trying to stay on top of the pile.

Not from my pocket

Sun, 09/25/2011 - 09:35 | Link to Comment MFL8240
MFL8240's picture

What happen to President clown he is AWOL on Europe and the collapse he engineered in the financial markets? Is the telepromter broken??   He finally has something to take credit for and nowhere to be found.  The US is out of their ever-loving minds if they consider this trash for another 4 years.

Cloward and Pivens would be proud of their protégée.  Performed to perfection!!

Biden most likely inside a bottle of Jack Daniels or at the tanning salon?? Lol!  This is quite amusing if not so serious.

Sun, 09/25/2011 - 10:09 | Link to Comment rpodraza
rpodraza's picture

He's golfing again.

Sun, 09/25/2011 - 09:36 | Link to Comment lolmao500
lolmao500's picture

LOL if they do not recapitalize them, they'll all go under. So LIARS LIARS PANTS ON FIRE.

Sun, 09/25/2011 - 09:48 | Link to Comment Curtis LeMay
Curtis LeMay's picture

So, in the very same interviewChristian Noyer, the head of the Bank of France, was asked to comment on reports about a plan to recapitalise French banks, to which he reponded:

"There is no plan, and we don't need one"

AND AT THE VERY SAME TIME...

if banks expressed the need for it, or in the case of an "extraordinary event", they could appeal to a public support mechanism created in 2008.

It can't be both, there is no plan...and there is a plan.

This guy is actually the head of the Bank of France??

Heaven help us all if he's indicative of the caliber of big-shots running our central banks.

Maybe Jean Claude "Credit Lyonnais" Trichet can help Christian out? Oh wait...

Sun, 09/25/2011 - 11:24 | Link to Comment RSloane
RSloane's picture

They lied except when they didn't. They obfuscated except when they didn't. They planned except when they didn't. They've been terribly consistent.

Sun, 09/25/2011 - 18:10 | Link to Comment Muddy1
Muddy1's picture

This isn't hard to understand.  There is no plan and we don't need one."  Why not?  Because we have had a mechanism in place for almost 3 years to handle difficult situations.  He's talking two different things: a plan vs a mechanism.  It's government speak, splitting hairs as my dad used to say.  Noyer was thankful that noone asked for an explanation because he wouldn't have been able to give one. 

Sun, 09/25/2011 - 09:49 | Link to Comment Cheesy Bastard
Cheesy Bastard's picture

When Noyer's ancestors moved to France, they dropped the AN off the front of thier name.

Sun, 09/25/2011 - 09:51 | Link to Comment Bicycle Repairman
Bicycle Repairman's picture

Can I say that the whole Euro project was about creating an entity to challenge American hegemony?

Sun, 09/25/2011 - 10:02 | Link to Comment Seize Mars
Seize Mars's picture

Can I say that the whole Euro project was about creating an entity to challenge American hegemony?

No, I think the reality is even stupider than that. I think it was a device for the French to dominate German banking. That's it. Also, an opportunity for some morons to drive around in limousines, acting important. Anyway take a look at this excellent book:

 

http://mises.org/books/bagus_tragedy_of_euro.pdf

 

 

Sun, 09/25/2011 - 09:51 | Link to Comment oogs66
oogs66's picture

maybe all the French Elite want to buy the dip but forgot to on thursday so want another chance?

Sun, 09/25/2011 - 10:06 | Link to Comment Firing Pin
Firing Pin's picture

France is known for 3 things: the Eiffel tower, romantic settings, and banks on the verge of collapse. With the entire western world going under, how long before our (western) governments demand our gold to back their newly issued "gold backed bonds" or new gold-backed currency (or some other form of this). Of course the governments will wrap their seizure of your metal in the flag...as you know (and as Samuel Johnson famously said): "patriotism is the last refuge of a scoundrel." If you don't think they'll take your gold, why not? They've done it before and they will need it to back their now bankrupt economies/currencies.  A friend of mine last week said "there is no way Americans would let the government seize their gold...they would rebel."  Well, Americans currently, and subserviently let the TSA see their wives and daughters naked in an X-ray machine...so when they come to get your gold, THEN you'll rise up? 

Sun, 09/25/2011 - 10:17 | Link to Comment ricksventures
ricksventures's picture

I HOPE 'BAMA DOES IT !!!!

with black foot soldiers in white afluent hoods confiscating everything of value 

each foot soldier gets:

weed and coke all he wants (and as a bonus Stanford made cocain, not street, one of the highest quality in the world and they really do make coke) so they can work "hard"

10% of daily loot

all you can bang white afluent chicks (you can put their fathers heads on your government provided SUV or his Beemer)

'Mericans are such a pussies, most will not fight back and they really cant agains drones anyways unless they like the smell of "BBQ" in the morning.....

 

GO 'BAMA - TAKE POWER NOW !!!!

Sun, 09/25/2011 - 10:29 | Link to Comment Volaille de Bresse
Volaille de Bresse's picture

"This "stress" excluded a greek default. Figures, eh?"

 

These stress tests excluded EVERYTHING problematic. Even a bum living under a bridge could have passed it... "Let me see : 3 rusted tin cans, an empty wine bottle, and a soiled mattress... Congratulations, SIr! Your assets are worth 74,000€!"

 

Thank you Barroso!

Sun, 09/25/2011 - 10:35 | Link to Comment SilverDoctors
SilverDoctors's picture

Anybody able to find any silver at their local coin shop this weekend?

Local Coin Shop Open Thread- Any Silver to be Found?

Shops around here have all been completely cleaned out!!

Sun, 09/25/2011 - 11:36 | Link to Comment Grimbert
Grimbert's picture

I live in England, and coin shops are few and far between. Silver is subject to 20% VAT so it's not worth buying bullion here. However gold is tax-free. Our local shop, Spinks, always has a couple of dozen bullion coins on display as well as plenty of numismatic stuff. The bullion is mostly Krugs, sovereigns and fractions of the above.

Every month for the last 2 years since I became aware of the musical chairs that is Fiat money I have been buying either a gold sovereign or a half sovereign, or maybe 1/10 krugerrand for variety. I persuaded my wife to buy her first sovereign yesterday. We went to the shop to be told that all the bullion was sold. The tray was full, but the shopkeeper said that someone had bought all of them. This has never happened before.

She sold us a proof sovereign in a presentation case for the bullion price, I guess it doesn't pay to piss off your regular customers, but I wonder what there'll be next month.

Sun, 09/25/2011 - 10:46 | Link to Comment BarryG
BarryG's picture

Siemens just moved between E4bn-E6bn from French banks to the ECB.

http://germanywatch.blogspot.com/2011/09/another-siemens-overspend.html

Sun, 09/25/2011 - 11:05 | Link to Comment All_Is_Well
All_Is_Well's picture

Why should this surprise anyone! The lying is implicit, the truth won't be told until recap is well underway!

Sun, 09/25/2011 - 11:09 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

>>

have a solid capital base, comparable to other European banks and they are profitable ... None of them is hiding any toxic assets."

>>

 

Which he can say if he believes his Greek holdings will be bailed out, or if they are hedged with unrecorded swaps.

 

The real issue in his quote is to remind the world what is in US bank inventory.  Not A Thing Has Been Done To Address Non Performing Residential Mortgages In The US.

Sun, 09/25/2011 - 11:15 | Link to Comment Kina
Kina's picture

If your one of the recently well off Chinese with maybe 50,000 or 100,000 in your bank account and your watching what is now going down in the US and Europe and Japan.....and you just know the shit is now hitting the fan....what are you going to do?

 

All those billions of privately held funds in Asia watching the shit go down in the West. I wouldn't be rushing out to buy stocks. On the contrary I would be selling out and parking cash eleswhere. The remnibi is pegged to the USD so gold and silver a looking kinda cheaper now. Maybe the USD can get stronger while the focus is on the Europeanes dancing around naked....but you know eventually the fucked US economy needs to print or go into reverse plug-hole.

 

If I were that Chinese guy in Shanghai I would be buying a few more bars of gold and silver.

 

 

Sun, 09/25/2011 - 13:36 | Link to Comment natty light
natty light's picture

  The run on Tomato 2 and some other lenders began the morning after the Financial Services Commission (FSC) suspended seven savings banks, including major players Tomato and Jeil, in its latest attempt to purge secondary lenders that were crippled by exposure to the country’s toxic property sector. 

 

http://www.koreatimes.co.kr/www/news/biz/2011/09/123_95020.html

Sun, 09/25/2011 - 11:32 | Link to Comment Steroid
Steroid's picture

By now you should know that you have to put everything into negative!

From:

"French banks are solid and can face any risk from their exposure to Greek sovereign debt, the head of the Bank of France, Christian Noyer, told a French newspaper, adding that there was no secret plan in place to recapitalise them."

To:

"No French banks are no solid and can not face no risk from their exposure to no Greek sovereign debt, the head of the Bank of France, Christian Noyer, told a French newspaper, adding that there was no no secret plan in place to not recapitalise them."

Or something to that effect.

Sun, 09/25/2011 - 12:21 | Link to Comment Edward Fiatski
Edward Fiatski's picture

But, but... ah, fuck it! 1120 held... DEAD CAT BOUNCE.

P.S. Body decomposition stage starts Sunday night, lasting through the week. Weather for the Fall of 2011: Possible outbreaks of sovereign defaults, currency devaluation, civil unrest, FEMA camps and mass graves as a result, have a nice weekend.

Sun, 09/25/2011 - 13:20 | Link to Comment Joebloinvestor
Joebloinvestor's picture

Since it is a FIAT system, why not hit reset and promise to be more diligent in the future (which of course they won't be)?

With all the CDS and bond buying it really is just the same isn't it?

Sun, 09/25/2011 - 14:41 | Link to Comment Random_Robert
Random_Robert's picture

Excuse me, Stewardess... could I please get another can of ginger ale? The man at the ticket counter told me this default would only last 3 days, and we've already been in the air for 3 months... and the turbulence is really upsetting my stomach.

Sun, 09/25/2011 - 18:15 | Link to Comment Muddy1
Muddy1's picture

Gold and silver crashing again at the opening.  In the first 10 minutes gold is down 0.9%, and silver is down 5.4%.  It's been awhile since I saw silver trading in the 20's.

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