EuroTARP Cometh: Germany's Schauble To Pull A "Paulson" Will Force Banks To Take Bailout Funds, Handelsblatt Says

Tyler Durden's picture

In yet another confirmation of just who is driving policy in Europe, Handelsblatt has broken news that 3 years after Hank Paulson "forced" US banks to take cash, Germany will follow suit next, and "bailout" the German banking sector by stuffing it to the gills with cash soon to be made even more worthless courtesy of persistent and relentless devaluation as it is used for no productive purposes but merely stave off the inevitable collapse of a financial system so broken it now requires not monthly but weekly bailouts. From the German publication: "the German bank rescue fund Soffin will force ailing banks to recapitalize next year. That's at least out of the draft bill, to be released by the Handelsblatt (Thursday edition), and the Cabinet is to decide the next week. Finance Minister Wolfgang Schäuble (CDU) is following the U.S. example: The US distressed banks were temporarily distressed during the 2008 financial crisis. The banks have since there is significantly more stable than the euro-zone in which the institutions were saved only at their own request the European Banking Eba by the banks of the euro-zone by mid-2012 its core capital to nine percent increase. Institutions that make this not your own to get guarantees from the Soffin." Simply said, because it worked (courtesy of an additional $1.6 trillion in excess reserves used fungibly by banks to plug capitalization holes) in the US, the forced bailout will work in Germany, where unlike the US, the top banks account for about 200% of German GDP. In other words, Germany is about to proceed with an implicit nationalization of its banking sector. Which means that while we thought yesterday that the German AAA-rating is the safest of all in the Eurozone, following this development we will certainly reevaluate.

More from Handelsblatt, Google translated:

Creates a German bank recapitalization is not your own, they can apply for help from Soffin. The Institute is unreasonable, the German banking supervision BaFin force it to accept government money. Normally, the state then receives shares in accordance with the Institute. It remains possible, however, continue to provide assistance to a silent partnership - but then must agree to the Bundestag, says the bill, with the will of the rescue fund Soffin are now revived quickly. After the acute financial crisis it had been closed in late 2010. He should be able to redeploy by the end of 2012 up to € 400 billion of loans and guarantees over €70 billion.


A Cabinet decision creates even before the adoption of the federal law assurance that no systemically important bank to fail in Germany to the new capital requirements. This, it says coalition circles, confidence is expected by the markets to the eba-stress test banks to strengthen significantly affected.


As a candidate for aid is already partly nationalized Commerzbank. Their boss Martin Blessing previously insisted to ask again in no case to state aids to want. If the German Financial Supervisory Authority BaFin, however, the view would be that Commerzbank's capital increase alone could not establish that the state would give the money by force.

One wonders if Schauble, who is now the next "Honk" Paulson, has also advised German hedge funds to trade as is appropriate, to a broad banking sector nationalization, in keeping with the US SecTres's behavior before the US bailouts began in earnest.

We expect the answer is a resounding yes.

And for those wondering why Germany needs a preemptive TARP, and why its banks are in deep doodoo, here is a reminder:

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ratso's picture

Alles ist in ordnung.

It removes uncertainty from the system and assures liquidity for the banks.

Mr Lennon Hendrix's picture

Three years later, still no one has any idea what they are doing.

American Dissident's picture

THEY know exactly what they are doing- Behold "The Forth Reich"

Mr Lennon Hendrix's picture

If the plan is to lay waste to the economic landscape, then they are geniuses.

Look people,

It already happened.  It's over.  Last week ALL Central Banks tied their overnight windows, their emergencie lending facilities, at one interest rate:  the Federal Reserve's.  This means that all investments in the Fiat Ponzi are equal.  This means there is now a One World Currencie.

Now Germany is saying they are about to jump ship.  Who knows if they have a life boat or not?  That doesn't matter.  What matters is that it has come to this- with sharks circling the Euro Zone, Germany, the engine of Europe, is leaving.  They are going to load up on Euros, and jump.

This will start a panic.  The whole Zone will follow suite, all hoping for a bailout.  You will see France, Italy, and all others bailout their banks now.  This will coincide with the ratings agencie cuts that we knew were comeing.  This will create huge deflation, as the agencie cuts will show that all these States are bankrupt, at the same time that the States create European hyperinflation.  This is what Keiser called "Blobflation".  It is called biflation from Caviat here.  You can call it what you want, give it a cute name, but it is the end of the Euro Zone.

And all the while, the Federal Reserve continues to spend hand over fist and do exactly what Europe is about to do.  Ratings cut after bailout, repeat, repeat, and anyone thinks there is such a trade as EUR/USD?  The DXY is the cornerstone of the Fiat Ponzi, and it has been bled at the alter of the Fed by Ben S. Bernanke.  The Fiat Ponzi is finished.  Everyone has now jumped ship.

Oh regional Indian's picture

I think Significant fighting operation will break out before that unfolds, nein LH? So many social levers yet to pull. 

German's have one of the most socialist set-ups anywhere in the world. Perhaps Germany's net creditor status is a huge hoax? 

Hypo-thecated? ;-)



Mr Lennon Hendrix's picture

And while the economie implodes, War Pigs keep their fingers on the triggers.  The US Military industrial complex pushed CIA led operations in Egypt, Libya, Syria, and are trying to now spur Mother Russia into infighting.  Israel tries to push Iran into a corner, and the US and UK operate either by pretend ignorance (dropping a drone in Iran's lap) or they got caught spying, again.

The War Pigs are watched intently by Central Bank heads, as they know their collapse is coming.  War is the only thing that could "save" the economy, Keynesians say, "Look at WWII as an example!  It solved the great depression!"

The culture of the world has gotten sucked into the Hegllian Dialectic of the "Two Sides" but these two sides come from one coin.  If the whole coin is seen, then there are three choices.  One side, the other side, or the whole coin.  This is why Hegel was wrong, and why modern political theory is also wrong.  There are more than just two choices in life, in fact there is a fourth choice.

What if the coin does not exist?  What if the coin does not make a difference?  What if we could live in peace?  Will we give it a chance?

boom goes the dynamite's picture

Generals gathered in their masses
Just like witches at black masses
Evil minds that plot destruction
Sorcerers of death's construction
In the fields the bodies burning
As the war machine keeps turning


The Big Ching-aso's picture



"Panzers in the streets!   Howitzers on rooftops!   Mausers at the gates!     Cave in to our demands or we will allow you to destroy yourselves!"

Otto Paulsonlanger, Minister of Orwellian Tactics and Propaganda

Oh regional Indian's picture

What if the coin stood on it's edge?


TheFourthStooge-ing's picture

If the coin stood on edge, you would see a layer of copper sandwiched between outer layers of cupronickel, recognize it as a worthless slug, and reject it.


Badabing's picture

then Dick York will read our minds "The Twilight Zone"

earleflorida's picture

ah yes,... the proverbial 3rd side?

Caviar Emptor's picture

Germany has a trade surplus on a continent where that is a distinction. And in a world where that is increasingly difficult. Beyond that it's the same story as other large developed over-leveraged nations, with some unique problems as well. 

Mr Lennon Hendrix's picture

We are waiting for Bernanke's "Oops." moment by the way.

Captain Kink's picture

...Germany, the engine of Europe, is leaving.  They are going to load up on Euros, and jump.


I am confused, why would Germany want Euros under this scenario? to bail out banks with euro denominated liabilities?  Ultimately they would convert to DM, no?

Mr Lennon Hendrix's picture

Because when the SHTF all Banks are going to whine about how solvent they are to the IMF when the IMF comes to save the day.

It will be the same for China.  When SHTF, China will say, "We deserve some credit (literally) for all of this debt."

The IMF/World Bank will look at balance sheets and decide who has the best rating, who gets what funding, etc. 

Caviar Emptor's picture

Tip o the hat, M Lennon. Yes, deflation is baked into a huge unemployment, huge overcapacity, poor demographic situation that's been brewing for decades. And the Fed/ECB and banksters still want to reflate, targeting inflation because without it their paper is worthless. I call it biflation not to comment on it's sexual orientation, but to illustrate the two competing forces, the two worlds within our world that are struggling for control. And to show how those two competing forces simply can't co-exist

Mr Lennon Hendrix's picture

They will blow each other up into nothingness. 

Eat your heart out, Heideggerians

The Big Ching-aso's picture



Europe copying the US monetary model is like copying the Larry Summers dieting model to lose weight.

sangell's picture

Might be more of a 'Gustav Line" to protect Germany from attack via Italy!

J 457's picture

Would this not be bullish for US markets?  And especially US banks....At least short-term until the bill comes due.

slaughterer's picture

Just publish these articles in the German original, we can all understand.  We are, after all, all Germans now.

Ghordius's picture

Nationalization, at least as threat, from 2012 on, too keep them in line.
So the German banking system becomes political - more then the French, about as the Italian in the old days...

Wrote so months ago - this is the locally preferred solution. Not new at all, only scandalous for Anglophone ears.

It is seen here (from experience) as safer as just opening the spigots á la Ben&Timmy.

I agree, It removes uncertainty from the system and assures liquidity for the banks. And they might get political scrutiny.

gojam's picture

The UK did it 3 years ago too.

It stops the weak in the banking herd from being identified (but tars all)

Yet another signal that Big Preparationsare being made..............

GeneMarchbanks's picture

Germany will guarantee war in Europe, forget Iran.

TheSilverJournal's picture

Do you think your country is any better? When fiat collapses, politicians will be pounding the pavement for a scapegoat..and war is the ultimate scapegoat.

LawsofPhysics's picture

The WORLD is no better shape thanks to globalization.  You act as is infinite growth has ever been a real option.  No one, and I mean NO ONE is addressing the real structural problems OR prosecuting the fraud and upholding the rule of law.  Where have all the adults gone?

hedgeless_horseman's picture



The US distressed banks were temporarily distressed during the 2008 financial crisis.

Hey, Angela, this American hopium is some goood shit.  Try some?

Caviar Emptor's picture

The adults resigned in 1980. Hate to say it. All seduced by the promise of something for nothing

GeneMarchbanks's picture

'Do you think your country is any better?'

What does that have to do with anything?

'When fiat collapses, politicians will be pounding the pavement for a scapegoat..and war is the ultimate scapegoat.'

Again, not about fiat. It's about selling off Europe to the PDs...


LawsofPhysics's picture

"Again, not about fiat. It's about selling off Europe to the PDs..."


There it is, the real frontrunning trade right now is to bet on the primary dealers, the war machine, and accumulate physical assets of real value, including PMs. 

Motorhead's picture

The Anglos will guarantee war more than likely.

Hmm...'s picture

almost all big banks ARE weak.

there are relative stronger and relative weaker banks, but among the big players they are all weak.

even if there were a big bank, they are tarred anyway due to opaque financial transactions.  You can look as pristine as the wind, but that's all for naught if you'fe dealt with too many insolvent counterparties.

I'm not sure I can name a big banking player that has rock solid balance sheet AND doesn't have hordes of ties to failed TBTF institutions.  can you?  because I'm happy to learn of one. 

gojam's picture

"almost all big banks ARE weak."

I can't argue with that but no bank will openly ask for it because they'll be targeted and if it were in anyway selective the same would happen.

In the UK 3 years ago every bank made "sincere" complaints that they didn't need it (all took it)

Scalaris's picture

"..but no bank will openly ask for it because they'll be targeted and if it wre in anyway selective the same would happen."


I'm guessing that some are feeling quite thankful for those constantly revolving doors, which let bank advisors/faux politicians do their "thing" then.

smiler03's picture

"In the UK 3 years ago every bank made "sincere" complaints that they didn't need it (all took it)"

 I might be wrong but not all banks DID take it. From

"However, of these, Abbey, Barclays, Clydesdale, HSBC, Nationwide, and Standard Chartered have chosen not to receive any government money,[12] leaving Lloyds and RBS as the only major recipients."



AngryGerman's picture

Yeaaaaahhh, state money for my bonus!

Motorhead's picture

You can't be too angry, AngryGerman....nice little pic there...lots of "Holz vor der Hütte".

bigdumbnugly's picture

ja.  you shall take zee bailout und like it!

der bitchez.

DormRoom's picture

shadow banking hours away from collapse, just like under Paulson. 


The debt spice must flow.

GeneMarchbanks's picture

EUtopia cometh. Fucking Geithner, I blame Obama for this shit. Good luck implementing this in all of Europe.

Athens riot can was small potatoes.

Spastica Rex's picture

When do we get real riots in the US? Occupy is lame.

GeneMarchbanks's picture

Ha, not soon it seems. America isn't even close to simmering and it has been four years now...

Totentänzerlied's picture

Come now, the Marxist-Socialist revolution isn't gonna fight itself, it's fun to watch the serfs repeat their ancestors' mistakes in perpetuity.

SheepDog-One's picture

Next year? Looks like that Santa Claus rally is fading.

LawsofPhysics's picture

More "feet to the fire" moves by the one world government mouth pieces.  "Accept the serfdom or else!"

Banksters's picture

I'm sensitive about German jokes.