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Le Figaro Discloses France Has Prepared An Emergency "Just In Case" Nationalization Plan For "2 Or 3" Banks
There are three phrases the market never wants to hear. Ever. They are "contingency", "just in case", and "only." Alas, it just got all three of them in an article just released by French Le Figaro which, per Bloomberg, has disclosed that "France has been working for a number of days on a plan that would allow the state to take a stake in the country’s financial institutions if needed, Le Figaro reports, citing a source. The plan, the article continues, is being prepared “just in case” it’s needed and only 2 or 3 banks may be affected under plan." So, let's get this straight: France has scrambled to put together a nationalization plan to bail out just "2 or 3" banks, "if needed"... Uhhh, all we can say to this is, LEEEEEEEROOYYYYYYY JENKINS. Although the person we would most love to hear say it, is the person who until two months ago was the French minister of finance and currently head of the world's most irrelevant and disorganized organization.
Full Google Translated story:
Paris prepares a plan to help its banks
The Agency for State Holdings (EPA), meanwhile, has been working for several days in a scheme that would allow the French to enter the capital of financial institutions.
In the heart of summer, the little phrase from the Executive Director of the IMF, Christine Lagarde , the need for recapitalization of banks in Europe had created an uproar on this side of the Atlantic, both in government than among bankers. In France, especially, we stick tooth and nail for several weeks this summer's strategy, namely the implementation of the plan to rescue Greece from July 21 will address concerns and to redress market the situation.
But according to our sources, Paris is ready to act. If the level of European support-which must still be approved by some national parliaments, provides that the EFSF to recapitalize banks, the agency of state ownership (EPA), meanwhile, has been working for several days in a diagram that would allow the French to enter the capital of financial institutions. "It's just in case ..." said a source familiar with the matter. Unlike what happened in 2008, which had pushed Bercy that all banks should call the financial office that had opened so that no-it-is stigmatized, only "two or three banks "This time would be affected by the device. "We're not in the same situation three years ago," says another source. And today, some are not willing to "pay" for others.
The Ministry of Economy, which is feared to fuel distrust of markets, it ensures that no recapitalization scenario is under consideration.
Controversy over the "AAA"
Whatever the option chosen at the end, France will act in any case keeping in mind that it is under the eye of the markets. Wednesday, after the announcement of the guarantee provided by the state borrowing by Dexia, the controversy over its continued financial rating "AAA"-one that enables it to borrow on the markets with the best price was great. This is Laurent Fabius who opened hostilities on the consequences of the guarantee provided by France. For the former Socialist prime minister, if the State "turns it on its back, it means that our triple A will not be comforted." Europe 1, he found the issue "very worrying". François Fillon has dryly responded, asking "several times to turn his tongue in his mouth before using expressions that are not accurate." The Prime Minister tried to reassure the public, adding that the state guarantees to Dexia will be "paid". However, he acknowledged, "no one can say in advance that this guarantee will cost the French taxpayer, although naturally each guarantee operation, there is a risk."
The Minister of Economy, Baroin, agreed meaning to the microphone RTL . "It will not increase the debt of the French state since, according to Eurostat, which is the body ESS, all the guarantees to banks are not included in public debt." Reasoning is true, as they are not lacking ...
But it is a rating agency who has probably the most reassured Wednesday: "It is clear that increased financial commitments is not a good thing, but efforts to support the banking system can be positive" and strengthen its note, assured Maria Malas-Mroueh, an analyst at Fitch Ratings in charge of France.
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remember the maginot, BiCheZ!
Seulement deux ou trois banques, pourquoi pas tous?
L0L!!!
MANGEZ-MOI!
Heck, the Euro-Brits over at FT know how to deal with a little French complication.
Maybe an encouraging word in the Lex column can send the S&P up another hundred points.
http://www.youtube.com/watch?v=A8yjNbcKkNY
Sacre bleu, Deux-Deux!!
Apres les banques, le deluge.
On a oublie des autres 50 banque du monde. Qui qui va sauver Bank Of America, Jp Morgan et Citigroup? Estit de niauchons!!!! La Reserve Federale. Gagne de tata. Ils peuvent toutes manger mes fesses. Mes petits chouchou. Achetee de l'or et de l'argent. Achete du cuivre et de l'huile si vous vouler un epargne. Mes colices. Dormer bien!!!! muah.
Ah Shantee
Chérie, j'ai rétréci les banques!
No problem, a quick crunch of the numbers reveals we have a 32.333% (repeating of course) chance of survival.
So you're saying we have a 1 in 3 chance...with all this positive energy how can we lose? ;-)
Europe's mess explained in under 3 minutes: http://www.youtube.com/watch?v=LyePCRkq620
try this instead:
http://www.youtube.com/watch?v=63i0ncXiaXE&feature=player_detailpage
sorry...it's six minutes tho.
Sovereign Debt explained for dummies
http://www.abc.net.au/7.30/content/2011/s3318934.htm
Yes its Clarke and Dawes again
This is fucking with my serenity.
une nouvelle bataille de Verdun?
+1000 LMAO
Je ne pas me devoir.
Voulez-vous coucher avec moi ce soir?
itchy itchy ya ya heya
moca chocolat-te ya ya
Merci, mais non.
Avez-vous d'or pour mon Chunnel, Monsieur?
WTF Did I hit the Goggle 'translate to French button by mistake'
It's all in good fun- I took way too much French in high school and college, and it never, ever gets used. Probably reads like pigdin at this point. Any excuse to justify wasting all those hours...
The waste problem is not that it doesn't get used. The problem is that it's French.
Chinese is now more popular amongst language students.
Can't blame them. Chinese culture is far superior to french culture.
Well Moynihan just mentioned on Kudlow that "Bank is America is sufficiently capitalized and will not be impacted by the contagion should it arise out of Europe"..
Note: He did not say BOA does not have exposure to Europe... Probably ML has more history associated with its hey days...
Nor did he say Customers will get access to their online banking by endof day today.. :( :(
put together it means only one thing.. BAC is a deer with headlights reflecting in its eyes..
Just returned from Bank of America where I closed an sizeable account open for quite a few years. I waited while three other people did the same thing.
"¿ Why are you closing your account ?" the "Personal Banker" asks.
My sugar-coated response: "Your fee structure is crazy, Your stock price is crashing, your website is crashed, the bank is up to its blind eyeballs in derivatives, and I am skeptical that BofA is 'too big to fail.' I want to get out while the getting is good."
Personal Banker responds with a Wince, a painful grimace, a long contorted look of absolute bowel-driven agony and then.... "Well the Show Must Go On. ¿ How would you like your money, in 20's or hundred's ?"
My response: "I will take whatever is on sale." Account closed. FIve people waiting behind me, no doubt attempting to do the same thing.
Must just be a coincidence.
ALCOHOL, TELEVISION, ALL-YOU-CAN-EAT BUFFETS, BUT ABOVE ALL:::
FAITH IN THE SYSTEM
Unfortunately the fuckers have my mortgage so I can't close everything.
Unfortunately if you just read the words, they have all US citizens mortgages.
I really wish Bill would have done bawney back in the day (instead of monica) and not had time to refresh the American Comunity Improvement Act.
Again, if you only read words, history will say Bill Clinton was the last president to create a national surplus. He just sold our land to the IMF and our Jobs to a giant sucking sound.
The IMF had you long before BillyBob!
ORI
They probably do not have your mortgage, they just service the loan -- just like they do mine (Freddie or Fannie owns my mortgage).
I can't shake this nagging feeling that it's a hell of a good contrarian trade to go long BAC these days- not all-in, of course, but it might be worth risking a little in a side pocket.
Time will tell. I'm not acting on it, just got that little whisper in the back of my mind. Sometimes that little whisper is right.
What took you so goddam long? I left Regions and went to my local S&L (top rated) 2 years ago! I see Regions has just imposed a truckload of new account and card fees. They can burn in hell with all the rest of 'em for all I care.
Sacré bleu! Un nouveau noir se pavane tous les jours!
C'est vrai! Pensez-vous trop?
Looks like they are also bailing out Belgian ones too...perhaps they will bail out everyone.
Under the 80-20 rule BNP, SocGen and CA practically comprise the entire French banking sector.
seulement deux ou trois banques, pourquoi pas toutes ?
Tyler, was a big fan of Wow back in 2006 - thanks for the timely nod.
Never played it - but I remember this one circulating the internet back then. Funny then and still funny now.
Leroy was funny but type in "Onyxia Wipe WoW"
I played Everquest years ago but gave up online gaming when I decided Id rather get laid than eat Cheetos and yell at my computer screen.
More DoTs, more DoTs, c'mon more DoTs. Stop DoTs.
For the Horde ... bitchez.
Watch the fucking tail!!!
All I can say is ROFLMAO
http://www.youtube.com/watch?v=iEWgs6YQR9A
Bip Bippadotta says +10
Man, Tyler is on a roll today. First the Spock post which was infinitely funny and now LEEEROY JENKINS.
Thanks for the comic relief.
lol hilarious
cue deer ........ Annnnnndddddd,,,,,,, SCENE.
Leeeerrrrrooooyyyy Jenkins. LOL. Classic. Made me laugh after a really long day, followed by a really long week, month, year... you get the picture.
AHHAHA I laughed even before I saw he posted the video. Non-gamers won't fully understand the refference.
Forget "fully-" I couldn't make heads or tails of any part of it. But, I am glad some of you got a chuckle out of it- any little light right now is worthwhile.
I wasted half my life and a ton of quarters in the 1980s on video games -- I'm cured. If ya wanna fight, take it to the streets for real. Real blood is a lot different, and let's not even talk about actual pain....
Remain fucking calm!
and keep your bug out bag....close!
Green, I agree, but condo dwelling Mr. and Mrs. Bearing are not in a position to become farmers. We will have to Bug In.
:(
Can I crash on the sofa? Promise I won't rummage the trash.
Must install hydraulic turret for bug in. Then crash and take rotation on the turret.
My itchy trigger-finger is ready!
In the Wow vein, to borrow a Chuck Norris fact from days in the Barrens of Wow...
"The Fed counted to infinity - twice."
The Irony is Delicious, the Frogs elect a Thatcherite Midget, and arrive at that creeds final destination within 5 Years.
We Limeys at least streched it out for 30 :)
"Thatcherite Midget" hahahahahaah....
I farking love you Tyler.
Well nationalizing the banks was the plan all along anyway. Enjoy, serfs.
Did you mean bankinization of the nationals was the plan all along?
Once the banks and the governments have completed their mergers, the resulting entities sure won't be republics, or democracies.
at least i got chicken
French banks saved, no crisis, no end of euro, no Armageddon. Boring world we live in.
Wait until French Revolution II hits and you're really gonna be looking with fucking amazement.
This shit is funny as hell.
How can France cover this all without ECB support who in turn need printed up funds from thin air?
France and Dexia are both still AAA? Morons.
But Redemption, Salvation and Atonement of Sins,
Goldilocks fucking downgraded Dexia to sale from hold this very morning!
France you deserve to get your credit rating stripped. F*cking con artists
LMAO!
This is great.
Looking for ZH vs MS part3?
Nothing to see here. Move along, IF NEEDED.
Proof that TPTB was "At the Ready" to roll out whatever was necessary to stave off an implosion.
You don't think these guys are dumb enough to allow the whole system to crash, do you???
With the 30-yr. yield at record lows while running a $15 trillion deficit, that is proof enough that the impossible can be achieved.
I think you overestimate them. They are scrambling to get things buttoned down before we engage ludicrous speed.
Captain! The printer! She canna take much more!
Damnit Jim! I'm a doctor not a SPERM WHALE!
OK, Milton! Your're on the next landing par-teee. Make sure you wear your nice clean new Red Jersey. We don't wanna make a bad impression with those nasty Klingons.
what's the matter colonel sanders, chicken?
I hate to have to one-up ya buzz, but ...
http://www.mediaite.com/tv/this-exists-obama-fried-chicken-is-chinas-new...
Regards,
Cooter
They are totally dumb. Any debitor nation relying on a creditor fix will be soley and f*cking disspointed when that 'creditor' "implodes". I would start to lock that in, Europe/US will both go into an ecomomic iceage, timed for winter...how ironic. But lasting for a lot longer.
ROOOOOOOOOOBOOOOOOOOOOO TRADER!
Yeah, it was a Shining-moment.
http://www.youtube.com/watch?v=MPpMHCodzzw&feature=player_detailpage#t=476s
The US federal budget deficit is 1.3T not 15T
Bob,
jealous much...now jealous that Robo can make up his own new, unique definitions and you are stuck w/ same old, same old!
Bleeding crimson with jealousy
So jealous of Robo that it stings the fabric of my existance. I only wish it wasn't so transparent.
Yeah, there's a lot to love w/ Robo...if only we could all be so...Robo-like. What a world that would be?!?!
Facts are facts. Good catch b_d.
It's what they can't see in front of them is what will kill them. It's just about happened in 08. It never is the same the second time around. The more hands in the cooking, the more precarious it gets. There are many hands now.
"You don't think these guys are dumb enough to allow the whole system to crash, do you???"
Cuz like, they've been doin such a intelligent job over the last few decades...like, fer shur...totally...lol.
SO funny watching all this today, the might reduced to running a dead empty Ponzi of a market based upon rumors of rumors.
I just shake my head anymore SheepDog.
The trend (one month, six month, YTD) is clearly down...the older kids who got all that free candy are trying to sell the sour center parts to the younger ones in the same ole sticky wrapper...lol.
I managed to re-sell the hairy end of the lollipop a couple of times.
Thats just wrong on so many levels...but please continue on the basest ;-)
Ha ha ha!!! Laugh of the evening, thx nmewn!
You meant to say they're not SMART enough to let the system crash. Where's yore head at boy?
Isn't this ultimately bullish? With Italy's UniCredit also being downgraded we effectively put then on the government tit and reduce risk?
fucking brilliant, this is exactly the way i picture this playing out
Rien ne va plus!
j'ai du papier...?
les meilleures papiers de popo pour les plus grande kaka!
Sarkozy's séance may be needed to raise Napoleon from the Crypt for help:
http://www.beyondeternitypromotions.com/images/photos/Seance%201.jpg
the only thing that seance will raise is a desire for her jewels, both on her forehead as below in her nether regions. Go long bull's horns! Before they get nationalized.
Merde alors.
We can offset our GDP woes if we all purchase WoW and sell in-game gold to teh Chinas?
Its the end of the World.....of Warcraft.
There is an old saying that it is better to cut off your whole hand in one fell swoop than to do it one finger at a time. So France puts all three phrases in one press release gets it all done and over with.
Aaah, bank guarantees that might not cost anything. This brings me right back.
hahahaha " Leroy you are stupid as hell..."
hahahaha "Brian Moynihan, you are stupid as hell..."
Fixt
but....but.....the stress test results were good
Stress tests all Clear but the prostate exam was Bummer
LEEEEEROOOOOYYYY JENKINNNNSSSS!! Hey at least I got chicken motherfukas!
Leeroy's just talkin' his book.
32.32% rate of survival.....think they were a bit optimistic.....LOL
Thats a 32.33% (repeating, of course) survival rate. Should be able to take that .33 and default swap derivatize the SHIT out of it!
Stick a fork in it.
Quelle Suprize....AN anaylst at a French rating agency in France, saying the bailing the bank at the expense of the country is a good thing. Probably the same one wha rated Ireland, when it bailed its banks BUT just before it then required a bailout.
Yes, we've seen this movie before in Ireland. It's all so very familiar ... ah, there are the promises that the guarantee probably won't cost anything! Of course the ending may be quite different this time, for various reasons.
Day by day, bit by bit, the contagion has worked it's way from the tiny islands, to the EU underbelly, now deep into to the near CORE, and soon the virus will infect the heart of the CORE...
Its an amazing thing to watch really. The thing they love & desire so much (debt) is whats killing them.
Ah well, throw another stack of Franc/euro's on the fire monsieur, its getting cold ;-)
ummmmm...so would THIS be a credit default triggering event?
Or does TPTB say 'All contracts are voided'
No insurance for YOU.
We'll see what rumors they come up with to 'fix' this black swan.
I'm gonna use my 'intimidating shout', we're gonna need divine intervention, we've got 32.333 repeating of course chance of survival.
Leeeeeerrrooooyyyyy Jenkins.
Godammit Leeroy you dumbass.
That was hilarious. Thanks TD
Is tomorrow gonig to be an Epic day:
French nationalisation talk,
Dexia
SNB data dump
ECB rate announcement
Jobless Claims
Wow, have I missed anything, Greek default!
it is now fashionable to bail out banks
This sound bite is simply released to give a "heads up" to the public for the nationalization.
RIP Steve, Decent legacy dude.
You mean to tell me the french have more foresight than the webmaster of BAC.
Bullish.......it
OK you guys, our deficit is $1.3 trillion and the national debt is $13 trillion and off-balance sheet crap probably totals $133 trillion.
In the end, it doesn't matter if its a trillion or quadrillion.
These "investors" who were running pell mell into our Treasuries for safety are not going anywhere.
At the first whiff of trouble or a crisis, those same clowns will be fleeing like a herd of Wildebeests right back into Treasuries, and they will be dumping gold, oil, copper, platinum, and everything else.
Same thing happened in 2008.
It just happened again in 2011.
Why would it be any different later?
Best of luck for your 100% treasuries position!
I will be different later because later, the fiat US Treasuries and FRB notes wil be adversely impacted by hyperinflationary "printing" pressures.
That's one. What ever China does to save its bacon is #2 and whatever the "Saudi kingdom" does to save its oil-based currency-wealth parked in City and NYC reserves is #3.
Pick a number!
ROOOOOOOBOOOOOOOOOOOOOOOO TRADER!
hahahahahahahahaha
"In the end, it doesn't matter if its a trillion or quadrillion."
In the end, to a paper pusher, correct.
Bankruptcy.
And the point of seeing it all beforehand and avoid living a lie would be?........
They'll be runing to Chinese treasuries...
They'll be running to Chinese treasuries...
Ok, RobotTrader, how come you can call a gold bubble, but not a Treasury bubble? Biased much?
I'm not sure that there's not anything that's not a fucking bubble anymore at this point.
I mean the whole world has gone to hell in a laundry bag of dirty jockstraps and all anybody does is pretend that things are gonna be A-fucking-OK. (The jocks will magically come home cleaned and starched for free.) Nobody wants to hear (well, except ZH'ers ex-ZHer's Trolls) anything about reality.
A view of the world to which I can testify firsthand. When most people ask about what they should be invested in they want answers within the paradigm of the old traditional asset allocation models. Even hint at what one expects (TSHTF, all hell breaking loose, bundles of Joyless Unintended Consequences Surfacing Like Boils) and one gets looked at like they're Nut-Fucking-Crazy. So now the best advice I can give people is that I am hoping for the best and paliing for the worst; they should get their affairs in a shape whcih allows them to sleep well at night.
I rest really well! The gold and silver lumps under the mattress lend only solace and peace to my sleep.
Oh, and one of these for my Moss 500:
http://www.ebay.com/sch/fastermetal/m.html?_nkw=&_armrs=1&_from=&_ipg=50...
Don't worry the French know what they are doing, this will protect them in the long run..........just like the Maginot line did
"Nationalise money and not the Banks" - Irving Fisher.
If France takes this bank debt on its books its only option is to buy Gold on a massive scale.
It could easily just turn customer credit deposits into Goverment money and let the bond holders with the private debt contracts - but the bankers run France - like everywhere else in Europe.
They will destroy the currency.
We have seen this soap opera already in Ireland - its shocking really.
Remember this comes a week or so after the french announcement that you cant buy more than 600$US in Gold w/o a bank transfer...
Coinky-Dink?
Nay...
Fiat death
Buzz n'est pas content
This is just a clear warning to the jackals not to mess with French banks: Paris now has a bazooka in their pants. If all they had was a squirtgun they might be forced to use it, and it might have proven inadequate. But since they have a bazooka in their pants, and the jackals know they have a bazooka in their pants, they won't have to use it.
It's a strategy that works every time. French taxpayers need not worry.
Hank Paulson is teaching the next generation of UChicago econ PhD graduates as we speak. No Sarc. He is on the facualty.
The answer is 50 trillion. That is the world answer.