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Live Webcast Of De Guindos Bank Bailout Announcement

Tyler Durden's picture


Spain's economy minister Luis de Guindos will hold a press conference detailing the terms of the bank bailout shortly. It can be watched live, and without translation, at the link below. In summary, the Spanish bank bailout is apparently a loan targeting the FROB, and at rates better than the market. In other words, the cramdown of Spanish bondholders has officially begun.

Key highlights:


On the conditionality:


And the important stuff:


And the most important stuff:


As noted above, the cramdown of Spanish bondholders has begun. Coupled with a Spanish sovereign debt/GDP which is about to soar even according to the most idiotic estimates which leave out all the contingent liabilities, we hope that, just as in the case of Greece, readers took our advice from January to heart and have put on the long Spanish UK-law bonds, short local-law bonds.

Because all hell is about to break loose in Spain once the initial short covering kneejerk reaction is over.


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Sat, 06/09/2012 - 13:45 | Link to Comment no life
no life's picture

How do you say 'zombie' in Spanish?

Sat, 06/09/2012 - 13:47 | Link to Comment strannick
strannick's picture

Its all Greek to me

Sat, 06/09/2012 - 13:55 | Link to Comment margaris
margaris's picture

you can also say "zombie".... or more detailed: muertos vivientes

Sat, 06/09/2012 - 14:05 | Link to Comment The Monkey
The Monkey's picture

That kneejerk response may last longer than you think.

Sat, 06/09/2012 - 15:06 | Link to Comment Pure Evil
Pure Evil's picture

Hopefully, Guindos won't straddle Merkel's foot with his ass.

Sat, 06/09/2012 - 13:52 | Link to Comment Jack Sheet
Jack Sheet's picture

just pronounce the "z" like "th" and flick your tongue out to its maximum extension

Sat, 06/09/2012 - 23:11 | Link to Comment Buck Johnson
Buck Johnson's picture

It's amazing that they acceepted the loan conditions.  It would be normal business if we where talking like normal business but it's not.  Spain is telling the people who are loaning them the money what they will and will not get as conditions of the loan they need.  If it was me I would say well we won't lend you the money, so their is blackmail happening now and I still think it won't go through.

Sat, 06/09/2012 - 13:45 | Link to Comment Ancona
Ancona's picture

Can, meet foot.

Sat, 06/09/2012 - 13:48 | Link to Comment hugovanderbubble
hugovanderbubble's picture

Germany and (NETHERLANDS) wont vote YES...

and Finland and Austria be careful...



Sat, 06/09/2012 - 13:56 | Link to Comment MeanReversion
MeanReversion's picture

I believe Netherlands has already ratified the ESM, one of the few countries to do so.

Sat, 06/09/2012 - 13:59 | Link to Comment zilverreiger
zilverreiger's picture

correct, the first tranche (believe 8B) of 40B for ESM was passed

Sat, 06/09/2012 - 13:49 | Link to Comment DavidC
DavidC's picture

these idiots will continue to take the path of least resistance rather than the one of most responsibility - that's why the ultimate crash is a certainty, whether it's this year or a year or two's time.


Sat, 06/09/2012 - 14:13 | Link to Comment EscapeKey
EscapeKey's picture

That's always been the case. It's also been the case why hyperinflations have broken out - because it's much simpler to print than to fix the underlying issues.

And the voters no doubt are with them. Try to explain to a 23-year old workshy welfare recipient that his lifestyle is unsustainable, when the "other" politician tells him that it's not his fault. Or the 78-year old who needs extremely expensive healthcare, which society can't realistically afford.

Much easier to remain militantly ignorant, and insist on "higher taxes on the rich", as the last few financially solvent individuals flee the country.

Sat, 06/09/2012 - 14:19 | Link to Comment crawldaddy
crawldaddy's picture

its about capital in too few hands, its about banks playing hedge fund manager instead of vanilla unsexy banker. Its about corps worrying about the next quarter and not the next decade.

Please stop with the bulshit that its average citizens fault. Its not. Never has been.

Its the greedy fuckers got to greedy.

Sat, 06/09/2012 - 14:48 | Link to Comment AccreditedEYE
AccreditedEYE's picture

There's plenty of room for the "greedy fucker" label to apply to... While I agree with your sentiments on the banker class, it's only fair to remind you what the "average citizen" auto workers union helped do to GM, what local "average citizen" municipal employees do when they angle to suck 2 pensions out of their state coffers. The feeling of entitlement for less skin in the game, the lack of a good education about what's really going on in the U.S. and abroad. There's plenty of blame to go around crawldaddy...

Sat, 06/09/2012 - 15:04 | Link to Comment eatthebanksters
eatthebanksters's picture

Glass Steagal should never have been repealed and all bankers who trade or invest other people's money should have their own skin in the game -make money when they are profitable lose their own money when they lose...with clawback provisions.  If we did this investors woud have a money in a 'traditional' bank with lower yields or risky money with investment banks with higher yields.  It also would rid the banking world of conflicts of interests and strategies for booking future profits today for bonus enhancement.  Big banks are out of control.  But then, so are many other professions...look at what a longshoreman clerk makes (I'll let you look it's more than many M.D.s make)...look at wages and pensions for many union members along with the union rules which create inefficiency rather than enhance it.  Its the model of the former USSR and it does not work.  Unions were created to keep workers from being exploited and that is a god thing.  Unions were not created to exploit everyone who is not a member, which is what they are now doing and its not sustainable.  I say hit the reset button and level the playing least the rules will be simpler.

Sat, 06/09/2012 - 14:49 | Link to Comment eatthebanksters
eatthebanksters's picture

Its already broken beyond repair, only a fool would believe otherwise...the pols are just trying to hold it all together aa long as they canbefore they get their necks stretched alongside the bankers.

Sat, 06/09/2012 - 13:51 | Link to Comment Spitzer
Spitzer's picture

Weekend warriors these Europeans..

Sat, 06/09/2012 - 13:52 | Link to Comment uno
uno's picture

Picasso's Bombing of Guernica Painting may be appropriate for this weekend

Sat, 06/09/2012 - 13:54 | Link to Comment Atomizer
Atomizer's picture

Met with my insurance agent this morning to pay on the policy of four cars. He says.. you have fed me bits and pieces over the years, I need to know more.


Agent: Question

Me: Answer

This continued for about 30 minutes. At the end, he says.. this is all a fucking ponzi scheme. I reply, welcome to the club.


Me: do you remember your competitor AllState that was nearly wiped out?

Agent: Yes

Me: Do you know who is backing all of your policies?

Agent: No

Me: Same people

Agent: I understand your point

Sat, 06/09/2012 - 13:55 | Link to Comment MeanReversion
MeanReversion's picture

Shhh, don't call it a bailout, it's "financial support".  The EU just ensured Syriza's election.

Sat, 06/09/2012 - 14:02 | Link to Comment rubearish10
rubearish10's picture

Agreed and why should we be convinced equities rally big on this news? Not until Germany speaks if IMF only "advisory".

Sat, 06/09/2012 - 14:03 | Link to Comment John Law Lives
John Law Lives's picture

BFD.  A bank bailout doesn't solve Spain's glaring unemployment problems.  This is kicking the can.  It would be nice if Germany had a REAL leader who had the guts to plot a course that is best for Germany.

Sat, 06/09/2012 - 14:29 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

Merkel's opposing party is far more Socialist.  They would have been printing and doing Eurobonds and bailing out everyone long ago.

Merkel is the only thing slowing the flow.

Sat, 06/09/2012 - 14:49 | Link to Comment noses
noses's picture

With the German socialists (especiially Gabriel) being such morons it might even be a good idea to keep Merkel.

Sat, 06/09/2012 - 15:04 | Link to Comment John Law Lives
John Law Lives's picture

Let the CDU nominate another candidate to replace Merkel.

Sat, 06/09/2012 - 14:02 | Link to Comment carbonmutant
carbonmutant's picture

What is the Spanish word for €urogeddon?

Sat, 06/09/2012 - 14:06 | Link to Comment MeanReversion
MeanReversion's picture

Who is going to bail out Spain's regional governments?

Sat, 06/09/2012 - 15:39 | Link to Comment Sudden Debt
Sat, 06/09/2012 - 14:10 | Link to Comment TruthInSunshine
TruthInSunshine's picture

Dónde está la perpetua fiat rescate del sector bancario?

 Esperamos que los alemanes han lubricado sus rectos adecuadamente. Hemos hecho más que empezar, y en Italia es el siguiente.


¡Larga vida a Mayer Amschel Rothschild & Moe Green .

Sat, 06/09/2012 - 14:11 | Link to Comment John Law Lives
John Law Lives's picture

Esto es cierto! Los alemanes deben comprar un poco de lubricación.

Sat, 06/09/2012 - 14:08 | Link to Comment MiniCooper
MiniCooper's picture

I can't see any mention in the press conference of an actual amount of money being agreed.

Is this just an agreement in principle but with no actual agreement on the money until the bank audits have been done?

Is it just Spain confirming it has asked for aid but insisting no conditions - which IMF/EU will NOT agree to?

Is there actually any deal at all here?

Sat, 06/09/2012 - 14:12 | Link to Comment EscapeKey
EscapeKey's picture

That's because whatever number they publicly state this weekend, next week it'll be $50bn above that. By the end of the year, it'll be twice the originally stated amount, and eventually the total cost will be 4x the initial number.

But the bankers will sit under a rain of fees, so don't worry about them. They will be just fine.

Sat, 06/09/2012 - 15:36 | Link to Comment Sudden Debt
Sudden Debt's picture

it's like asking your wife how much those new pair of shors costed..l

Sat, 06/09/2012 - 14:09 | Link to Comment BluePill
BluePill's picture

As long as Indians and Jews are alive on this earth humans will continue to suffer



Sat, 06/09/2012 - 14:09 | Link to Comment MeanReversion
MeanReversion's picture

Moody's may downgrade on this if the loan is senior to Spanish bonds.

Sat, 06/09/2012 - 14:47 | Link to Comment noses
noses's picture

What about a downgrade because Spain is broke, no matter who is getting the last droplets of blood?

Sat, 06/09/2012 - 14:15 | Link to Comment crawldaddy
crawldaddy's picture

all this really shows is that we are right. Contagion is happening, and will spread to all of Europe. Bailout, smailout, thats not the point, the point is this shit is spreading and the point comes where the bailouts stop, Wile E Coyote falls 

Sat, 06/09/2012 - 14:20 | Link to Comment ciscokid
ciscokid's picture

Estamos jodidos!!!!

Sat, 06/09/2012 - 14:21 | Link to Comment Kassandra
Kassandra's picture

"This is not a rescue". ?????

Sat, 06/09/2012 - 14:22 | Link to Comment timbo_em
timbo_em's picture

Tripple digits and counting?! Less than two weeks ago it was only 30 bn euros. Can we go back in time? Maybe even as far back as 1998 to prevent this madness from happening?

Sat, 06/09/2012 - 14:27 | Link to Comment magpie
magpie's picture

My conservative estimate is at least 300 billion. But as the example of full Greecefication shows, you can end up with more.

Sat, 06/09/2012 - 15:33 | Link to Comment Sudden Debt
Sat, 06/09/2012 - 14:27 | Link to Comment carbonmutant
carbonmutant's picture

How many Greek bonds does it take to equal a Spanish bond?

Sat, 06/09/2012 - 20:26 | Link to Comment CreativeDestructor
CreativeDestructor's picture

and i wonder how greece votes on these news

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