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Italian Banks Plunge On Capital Raise Concerns
While headlines are reeling with the almost-50% drop (and 8 halts today alone!) in UniCredit's stock price since the start of the year (as it tried and 'succeeded' to raise capital from clearly risk-averse investors), the rest of the Italian banking sector is now 'crashing'. With bank stocks down 12-20% year to date across the board, the clear fear is that the cost of raising real equity capital (not finding some short-term funding crisis solution) remains extremely high and as we tweeted last week, if the EUR7.5bn capital raise caused a 40% sell-off in UniCredit, how is the market going to cope with the EUR115bn more that is needed? Good Luck.
8 Halts in UniCredit today...
as the rest of the Italian banking sector's equity capital is devastated.
Chart: Bloomberg
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call Nestle
I hear Buffet is willing to give a life line to zombies.
Oh, yeah, I almost forgot. With all the rah rah about the improving economy, it almost slipped my mind that there is a time bomb ticking in Europe. Silly of me.
The US isn't much better.
Unless, of course, you believe the absolutely bullshit stats which make it out of the US at the moment. 8.5% unemployment, yeah, and Obama will go down as the greatest president ever.
Yeah, but if McCain were elected, we not only would have the bullshit stats, WWIII would have escalated way beyond where it is now. All of the so-called choices we have are not even remotely close to what the electorate desires. Any semblance of democracy has been long gone in this Nation. The only thing left to do is try to sort out how Mr. Market will behave given all the government manipulation. Not an easy task!
Don't worry, most Americans when they hear, "Europe", think of the band and their song, "The Final Countdown".
creditanstat, bitchez
http://azizonomics.com/2011/08/26/warren-buffett-credit-anstalt/
Kudos for the memory jog on the long forgotten CreditAnstat....the Austrian institution that really got the bank run party started ( circa 1931 ).
Is Sunday night Bath Night?
Most any night for people who live in Bath,( UK )
even extending lifelines to decomposing zombie churn chunks.
You know the sick thing is that the US media isn't talking to much about EU implosion anymore especially Unicredit. I went to look it up and it's the European version of Citibank. This bank is a monster and it's falling like this and fast. I read the article and they are trying to get buyers of the stock at 1.9 euros a share and nobody is buying. I would like to know what the big buyers know that I don't know, what is Unicredit holding in regard to bad assets.
Repudiate the fucking debt already and kick the paper-pushing fucknuts to the curb. Wake up folks, if you can't put your hands on your "investments", you don't "own" them and chances are it has already been stolen or devalued. Thanks for the heads-up Tyler.
Related, the Italian 10 year Treasury paper just hit 7.16%.
Does this make 8% the new unsustainable theshold?
It'll be the new threshold for all of three days.
Then 9% will be the new threshold.
And Spanish Banks to Follow soon Spain deficit 16% not 8% (Eur 145 bln debt unpaid by local & public administration since June, will be added soon), Watch Spain CDS closely
Short STD and BBVA
I hear your reasoning, but have you got a link for this?
When there will be a link it will be too late to trade it, just do the math trade it ahead of it and then when it makes the first page of the news paper close your short
Already have puts on STD and BBVA. Thanks for the info though.
I told you many times, Italy is the 800 lbs gorilla in the room, and it's not fixed yet, MPS will go bust.
If Italy is the 800 lb gorilla, what does that make China?
Hell nevermind all that, only thing that matters now is we got a dictator to re-elect!
Obviously, China is King Kong. I don't know of how many "metric tons", in the parlance of our times...
+1 for using "the parlance of our times"
all you have to do to solve Italy's problems is to empty Berlu's banks accounts in ****; where no doubt lie the 200 B of Q-daffy's missing billions. As those of 'Oligarchs of the world unite' club lie sweetly in swing low chariot City land. 25 T and going strong every day as they rip off the sheeple via their preferred HF vehicles. Simple enuff to empty those accounts if you can send those great train robbers to spend a week end in holiday paradises over the world. What a Navy seal can do to OBL our anonymous hitment could do to the uber bank accounts using photonic holographic means. How to change virtual money into real money using holographic infiltration of the vaults is the new game of hackeristan. Good luck, you can save the world by emptying the Oligarch's Ali Baba forty thieves caverns. I'll drink to that.
All that would need to be done is deposit a single penny into a central bank's main account.
To run, all the central banks have an account that is at zero. That account must be at zero in order to issue money from thin air from it. Put any denomination into it, whatever that account number is and the whole thing blows up the same second.
Doesn't matter which central bank either, they are all daisy chained together. It would be like a string of firecrackers going off as each of them attempts to shut the door to avoid the contagion of a single penny swap from account zero for the country the central bank resides. But conditionally the banks must always use this single point of reference of the empty account to issue credit/currency properly.
Anonymous just doesn't know that bank number yet. Anons are working on it though if it makes you feel any better about he situation. the theory is all the credit issued collapses immediately because a single penny isn't enough to back the central bank promises. If the central bank can't deliver credit in any form it transfers(dumps) the penny to the next bank to rectify itself, then that bank goes apeshit, etc...rinse and repeat.
Since the Fed setup shop in Libya, it has the lowest level of security which has made it a very attractive target for some of the Anon groups. It's shame that Libya had to be placed under the yoke of the central world banking empire, but a necessary evil to get the central bank to setup shop. It's one of the reasons Anonymous was all over Egypt but very quiet about Libya. We needed them to play into the chess maneuver properly.
The VERY FIRST THING you learn in finace, whether it's from your parents, grade school, colllege etc. is the golden rule, (right behind supply/demand) RISK/RETURN. Sorry folks, even 7% isn't cutting it. Adam Smith's 'invisible hand' is flipping us off!!
All I can say about this Italian news is IT'S ABOUT FUCKING TIME...I need to be compensated for the risk I take.
Everything has it's price and sooner or later you it will find equilibrium.....
Normal shit and I like it. IT'S NATURAL...
Dharma (Sanskrit: ???? dhárma, Pali: ???? dhamma; lit. that which upholds, supports or maintains the regulatory order of the universe) means Law or Natural Law and is a concept of central importance in Indian philosophy and religion. As well as referring to Law in the universal or abstract sense dharma designates those behaviours considered necessary for the maintenance of the natural order of things. Therefore dharma may encompass ideas such as duty, vocation, religion and everything that is considered correct, proper or decent behaviour. The idea of dharma as duty or propriety derives from an idea found in India's ancient legal and religious texts that there is a divinely instituted natural order of things (rta) and justice, social harmony and human happiness require that human beings discern and live in a manner appropriate to the requirements of that order.
Dharma: Who is truly happy? What is the greatest wonder? What is the path? And what is the news?
Yudhishthira: He who has no debts is truly happy. Day after day countless people die. Yet the living wish to live forever. O Lord, what can be a greater wonder? Argument leads to no certain conclusion, the Srutis are different from one another; there is not even one Rishi whose opinion can be accepted by all; the truth about Dharma and duty is hid in caves of our heart: therefore, that alone is the path along which the great have trod. This world full of ignorance is like a pan. The sun is fire, the days and nights are fuel. The months and the seasons constitute the wooden ladle. Time is the cook that is cooking all creatures in that pan (with such aids); this is the news
But Monti said yesterday that the Italian Banking System was strong and NOT under threat.
He wouldn't lie would he? Well perhaps only if the issue is really important.
liz, every single sprint to the microphone to announce AGREEMENT over the past three months has "really imporant" as the conscience balm that allows looking in the mirror each morning to shave.
Every one of these assholes think they are saviors of the world and their singular position and responsibility justifies every lie they tell.
That's how cotton candy is made...
no no lizzy, its ok. monti took care of ALL the necessary austerity cuts. everything is fine in italy now. monti will now focus on economic growth and cold fusion to ensure a balanced budget by 2013...........
OT : Know what's interesting? The Polish Military prosecutor on the Polish government plane crash shoots himself after news conference...
http://www.bbc.co.uk/news/world-europe-16466522
In television pictures of the news conference, Col Przybyl is seen reading out a statement to reporters: "During my entire service as a civilian and later military prosecutor, I have never brought shame to the Republic of Poland and I will protect the honour of an officer of the Polish armed forces and prosecution. Thank you, please give me a five-minute break, I need to rest."
Then he shot himself. Me thinks he knows the truth... aka RUSSIA murdered the Polish government. And he obviously can't say it publicly or it would create a big shitstorm.
Report :
http://www.youtube.com/watch?feature=player_embedded&v=LoUkobHYAlk
russia, or the usual suspects trying to make it look the russia... seems like the latter to me.
'Me thinks he knows the truth... aka RUSSIA murdered the Polish government.'
Wow. You cracked the case. Or your brain, it's hard to tell with such perfect syntax and causally linked investigative research via the BBC.
Make your own damn research. I know I did back when it happened. Someone murdered the Polish government. Probably Russia.
So why didn't he just say it then shoot himself??
Dear me...
Because they would have offed his family?
Anyone who thinks the Polish plane crash was an accident is no better than fools buying equities as investors or people thinking obaMao has the people's best interests in mind.
Good luck indeed.
Maybe the new corporate multinational shadow banks will come to the rescue...
The EU Members and their quasi-privately and privately capitalized banks are sound, there is no need for galactically massive EUR printing & flooding & debt/currency devaluation by the ECB (with Germany's consent), and all is well.
Italy is just going through a rough patch, to be followed by a rougher patch, to be joined in the roughest of patches by another half dozen small to large EU Member states, after which, everything will stabilize, without the need for massive fiat dilution.
Joe Wiesenthal & Andrew Ross-Sorkin said so.
Where's LCH and the rest with the margin hike?
"...almost-50% drop (and 8 halts today alone!) in UniCredit's stock price since the start of the year.."
Anybody remember the good old days when we had free markets?
We're only weeks away from every market looking like the total fuking sham that is the US Bond market; no bidders; zero interest rates; zero interest; highest prices in history; welcome to Zombieworld 'sta-bil-ity'
(ie. the complete suspension of any shred of reality)
and you cant short the mother fuckers either
Nah, it's cool. They're gonna monetize all that real-estate equity again, remember?
How can US financials be up with this happening? (FAS, XLF)
But don't worry that is all bullish for US markets!
Duh...the crash will never come
It wont crash with an advanced warning, thats for sure. One of these morning we'll be sidetracked with some huge terrible event going on, markets and trading accounts 'closed until further notice'...OH whats that? You cant access your funds? Just get in line behind the MF GLobal guys and wait to receive your settlement....which will never come.
I don't know. I don't think they monetized enough to fire anyone. If they fire people they become part of the army that spends the 401k to survive. That army needs money in the bank that is just promises. The corporations can't fire people because their 401ks are unfunded. Or they can't fire anyone more than the hit to pensions can allow. Which means the fired are more likely to get paid their 401k. But if they dont' spend it on corporations products then they don't refund their ability to lay anyone off.
Which brings us to shit like the post office. Post office can't dump all the people it needs to dump. They would want to get to their 401ks. That's not there. So you can't fire them. I may be wrong but I just see it that since they've gone all apeshit crazy with this 401k crap any attempt to downsize the government would simply nuke the shit out of the banks.
If the government threw 20 million workers out on the streets the buck would start dressing up like 50 cent and rapping. And if another round of 2008 layoffs happened there would severe restrictions on withdrawals and no chance in hell of moving your 401k into a safe haven.
Well theyve already fully monetized everything, FED owns all the bonds and stocks already, whats left to monetize?
If people think theyre printing money so mom and pops can have a nice comfy retirement out at The Villages, and thats what all this is about to support peoples 401K's LOL theyre crazy if they believe it.
You're not getting it. The buck broke on llehman iou's. The buck broke on GF.
Geral Cilente is getting a really good view of a broken buck.
When they start downsizing people start poking around in their 401k.
GF is creating such a demand for dollars that it's rising to 90 on dxy just like it did wtih the llehman collapse.
Eventually keeping people to take the strain off the banks won't be possible. As each collapse get's larger and larger resulting in a larger upswing in dxy followed immediately by a relentless march down. When the bottom was lookng scary last summer. Just take 4 or 8 or 12 points off that bottom.
Just google break the buck 2008.
remember, their biggest shareholder is mediobanca
good thing you can't short them.
Wonder who the counter parties are?
Il Monti Duce
WB7, I find this a bit distasteful. Please get the political affiliation right.
Berlusconi = Duce
Monti = appointee of an ex-communist = chairmen
It should not be that difficult to find an old sovjet uniform for Monti...
I know that the difference is not that great, but it does matter in the Italian Context. There are real fascists in Italy, and the hate Monti. There are real communists in Italy and they are supporting (for the moment) Monti, if not only because Prez Napolitano appointed him.
Mussolini was a follower of the communist ideal before he invented something new - facism. Hitler copied that later.
I did write that there is not that much difference, didn't I (seen from afar and as a lover of freedom)? If WB7 wants to have pictures that will represent our age in a far future's history book collection - and I think he is getting there - he has to get the affiliation right.
Fascism matters in Italy, as does Communism, as does Anarchism, and the three might exchange some bombs in the near future so if you want to understand who is killing who you have to keep the tribes apart, the way as I try to do with Reps and Dems.
I didn't want to step on someones toes, Ghordius.
I just like to play the advocatus diaboli sometimes.
My point was, that both ends of the political spectrum (radicals) are connected in some way.
The more you know.
http://en.wikipedia.org/wiki/Fasces
Facism is everywhere and they even let you know that you are dealing with facists.
How shall I explain? Cowboys are everywhere, but Gauchos are only cowboys in Argentina and it does not make sense to go to an American Cowboy and tell him he is a Gaucho? And you sure don't call him a cowherder...
when you say "fascist" in Italy, you mean something much more specific than what you generally mean in the US or here in ZH (by the way, I'm not junking and I'm wondering why WB7's comment is being junked...)
and the link you've put in is about the symbol, which is something different and way older from the ideology http://en.wikipedia.org/wiki/Fascism
+1000
Now, ZH's where are your papers?
Well, if it's real or else. but this flight back to 30s
French banks down today also.
More than one way to crash the Euro.
ECB bond purchases = a squirt gun for a house fire.
Wow, US market's crashing on this big news...
oh wait, scratch that...green again...and now back to Phil "worn union knee pads" Lebeau for the latest pretty, shiny, distraction ploy.
Hell, we're only 1,600 measely points from all-time DOW highs! Yipee all is well!
that is amazing
"We're only 1,600 measely points from an all-time DOW high..."
And yet, after ruinious desrtruction of so much of the economy, middle class, 14 trillion fiatskis pumped into the system to be thrashed and churned and burned by the banks & Wall Street since....1998...we're where we were back then on the U.S. indices. with probably closer to triple the real unemployment, inflation eroding close to 40% of those nominal points put on the board (of many tickers that are new, replacing the ones that went to $0 or close to thereabout - poor investors of the Winners of the New World), falling living standards, and the greatest set of known unknowns known in a long time!
All aboard Nikkei-expess, bitchez.
Yes, but priced in usd, which has been debased somewhat.
The financial-crack dealers have become users - sucks for them; not that it improves OUR situation any, however...
Western World financials now need a steady I.V. of pure fiat heroin, just to stay alive 1 more day...where will more come from tomorrow? Hell with all that, give us our money heroin fix NOW!...yea this should end real well!
The US has more like a 12% unemployment rate and could comfortably deal with a 20% unemployment rate as many other countries do...the point is, the only short term cost to the country for having people out of work is unemployment checks (and maybe crime when those run out), which now are falling off as quickly as newly unemployed start receiving them...what does it cost for the US to "carry" unemployed citizens? Not much and certainly there is no impact on multinational organization profits when they can pick and choose which countries and which global employees it wants now.
And jut like that the cracks that were barely visible before now look big and bulging
Booomm!!!
(ANSA) - Rome, January 9 - Italian tax-collection agency Equitalia was targeted again on Monday on two separate occasions, once at a Rome office with an envelope containing a flammable powder and a fuse.
http://www.ansa.it/web/notizie/rubriche/english/2012/01/09/visualizza_ne...
William Banzai 7: here an example of the above "Last week agents from the Turin office intercepted a letter addressed to the head of the branch containing a bullet with the word ''anarchy'' written inside."
So the "usual suspects" would be either anarchic cells or disgruntled mafia heads (who like to pose as real anarchists).
Come on Tyler... aren't they any links between Meryll and Unicredit...
Where are we?
USA is spending at least $2 for every $1 it collects, and still the economy is a joke. The rule of law is being trashed which was the only real competitive advantage left.
China has been increasing debt at warp speed to try and patch up a system that was built using the assumption of 12% growth to infinity.
Europe is being torn to pieces as it becomes apparent that poor countries cannot borrow forever to pretend their population can live like rich exporting countries.
And we are all to believe that investing like it is 20 years ago is a good idea????? I for one, do not believe that everyone can live beyond their means....at teast not in the long run.
YES WE CAN! Oups sorry i may be late on that one...
customers are pulling their funds out of Unicredit-Group-banks and its many subsidiary banks.
Unicredit market-cap today: EUR 4.41 billion
And dropping like a rock - does anyone know how much money has been pulled out from Unicredit by depositors? Cos that's when the fun starts...