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Newedge Leaves Greek Stock Market, Will Only Execute Sell Orders
Either the game of chicken in Europe has just hit and surpassed ludicrous speed, or French banks SocGen and Credit Agricole, both of which have some of the worst CT1/TA ratios in the known universe, and which are the JV participants of Newedge, have decided to formally pull the plug on Greece. As the FT reported moments ago, Newedge "has told clients that it will process only sell orders, and stop extending margin loans for existing positions in Greek securities, according to a memo obtained by the Financial Times."
A list of securities subject to the new restrictions include foreign-listed shares and American depositary receipts for Greek companies including Alpha Bank, Coca-Cola Hellenic Bottling and Paragon Shipping, a New York-listed shipowner that is headquartered in Greece.
“It is part of our ordinary risk practices to minimise our potential exposures proactively when we are concerned about potential issues,” the broker said.
Newedge – a joint venture of French banks Société Générale and Crédit Agricole – has Europe’s seventh largest hedge fund prime brokerage business, with more than $31bn in client assets, according to industry publication EuroHedge.
Its move is the latest evidence that the financial sector is preparing for a eurozone break-up, even as European officials debate the terms of the Greek bailout. A person familiar with the matter said Newedge wanted to avoid unpredictable risks in the event that Athens returned to the drachma as the national currency.
Add this to news over the weekend that Euler Hermes is "reviewing Greek export coverage." To wit - "In light of the recent developments, Euler Hermes will most probably have to switch to a more prudent approach, also in the interest of its customers,” spokeswoman Bettina Sattler said in an e-mailed response to questions. “The outcome of the new elections in June remains highly uncertain. Consequently, the situation is further deteriorating. The risk of Greece exiting the Eurozone has been revived." Translation: Greek foreign trade is about to be halted dead in its tracks.
And now, as per the Newedge hint, we have a concerted effort to crash the stock market too.
In other words, in addition to a bank run (because as has been widely reported already, Greek banks have seen billions in cash withdrawn in the past 3 weeks), in addition to trade paralysis, we are about to see a full blown stock market collapse of what little is left in the Athens Stock Exchange as everyone rushes to sell any securities at firesale prices. Sadly, this is nothing but the final punishment for a Greek population which held its first quasi-referendum on being a Eurobanker tolling operation (where European "bailout" funds go simply to fund European bank capital shortfalls, and the ECB of course) and said no.
Simply said - what we are witnessing is the concerted effort of Greece's former "allies" do everything in their power to destroy the small nation just so it has a taste of what would happen if it indeed follows the democratic process. And those organizations, such as the IMF, whose job it is to mitigate such a process, are doing the opposite, and merely pouring fuel on the fire, as LaGarde's interview in the Guardian indicated.
Basically, the entire developed world has now gone all in that Greece can be scared out of doing what its population has indicated ever since the first parliamentary election, has every intention of doing.
The only question is whether, as we asked even before the election, the "Greek population has already lost everything and is now free to do anything." Because if it has, and following 2 years of wealth transfer from the Greeks to the banks the answer is almost certainly a resounding yes, the outcome for all those attempting to herd the Greeks, will be far more disastrous than any of their fearmongering attempts of a Greek social collapse ever could be.
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And so it ...... extends.
reverse IPO you can only sell
Greece just got facebooked.
Just when you think it's safe to rehypothicate all your Greek securities.
Everybody is twisting the Greeks' arms. I hope Greece tells the rest of Europe to go fuck themselves. Lenders are responsible for this mess. When I buy a bonds, I'm always duly aware the risk lies on my own shoulders.
The black swan of diminishing collateral continues to spread its wings over a very large fan known as the world's financial system - it wont be long before it takes a very large dump on said fan. We're going to need a LOT of paper to clean this mess up! And then there's that problem of desposing of all that shit covered paper. Are central banks still buying shit covered paper?
The news is so depressing on this site that I usually need a drink just to get through the synopsis, let alone opening the articles, but ocassionally I get to laugh really hard!
Thank you sitenine for a needed guffaw.
Who the fuck takes out a margin loan to buy Greek stocks?
I mean, come on, some people are just asking for it...
Wont happen. Greeks are so afraid of bank runs and a return to the Drachma every poll now shows ND at #1 with enough margin to form a coalition government.
Heaping the pressure on here could lead to a blowup even if the Greeks BEG for austerity. I think the point is more to dissuade Portugal Spain and Italy from even thinking of Fing with the Troika.
This is going to go on longer then you think. US will kick then can on austerity, probably take till 2015 to blow up....
If the US follows the path of Japan, then, we'll be at 240% debt-to-gdp some years out, while we endure this slow water torture decline. That's pretty much what I expect. Rapid liquidation isn't an option at these debt levels. Should prove to be one of the most difficult investment environments in history.
We have got to start thinking outside the "economic" box. The IranWar will kill the dollar. And that war is no more than 90 days away. Invest in lead.
All-in in poker is exciting but someone always loses big
Actually, everyone except for the winner loses everything...
Memo to Greece :
See Iceland .
Iceland didn't have a shared currency like the Euro; they'll pay in the hell of their own free democratic choosing. They can pay each other with back rubs and olive oil. No tears from Turkey.
Iceland fucked off the right parties , at the right time , good on them . There's a lesson in what they did , I think .
http://www.youtube.com/watch?v=4aXIFFaWNjM
GREXIT<-------..............this way!
eat a gyros today to save greece's tomorrow!
Buy more Feta
I'll gladly pay you Tuesday for a gyro today.
So they will not extend margin loans to clients with Greek investments....soooo, does this mean that clients with margin loans HAVE to sell their positions on Monday, or is this a future thing?
Sounds rather ominous.
Everybody picking on poor little Greece - a deadbit trash pit. They deserve every bit of it. Wasn't it touching when one of the Greek politicians who has stolen millions over the years said Greece had been insulted by the IMF cunt saying they didn't pay their taxes? If they get this pissed about the truth wonder what would have happened if she told a lie?
Try not to lay it on so thick next time. You're smelling up the place.
I thought my post was quite sympathetic - to the people who've been screwed - the creditors. When you borrow money you have an absolute obligation to pat it back. If not you're a deadbeat.
depends on what you mean by "you borrow money". if politicians borrowed it, they can pay it back. send them in chains to the EU so the satanic bankers can sacrafice them to banker gods. leave the people alone.
TBTF should include ignorant voters. Sooner or later things have to be paid for.
But when? 30 years ago I was hearing that the US budget deficits would lean to ruin. Today US borrows at less than inflation in amounts that would have been unimaginable 30 years ago.
makes me wonder if the thirty year treasury bond is a good deal at 2.85%. the lowest yield/highest price was like 2.5% december 2008. and it's not like there won't be any more real soon.
Didnt you get the note ZH is no longer a bastion of free market capitalism and investors. Its all hippy OWSers, PM bugs/doomsdayers, conspiratorialists and other parasites looking to redistribute your ill gotten gains. Whats that Star Wars quote about the worst den of villany and larceny... Its here.
Im actually afraid to post here because the SS might think Im part of some conspiracy to mail bomb letters to the "evil banksterz"
Through the valley of darkness we march and the gates of hell we charge for we our the meanest son of a bitches in the valley.
What about when you are forced to borrow money? Don't think that is possible? Wake up, sheeple-boy. Everyone is a slave. Money IS debt. And you are one of the dumbed down idiots that keep the banksters in business.
The lenders were reckless, period. Optimism, ironically, cut us off at the knees.
... even going after shipping companies that have global operations and no "Drachma event" exposure.
Hmmm... Markets are... Are... What was the word?
The left wing said that they will Tax the Greeks with off shore companies/operations (like ship owners).
Good luck with that.
Most of them have moved to the City since 1981 (year that Pasok came to office with exactly the same rhetoric).
Moved to the City?!?!
What would be a motivation to do that?
Efficient?
Markets are…
facing headwinds?
experiencing a bit of rough weather?
forming a bottom…a rather large bottom?
starting to unravel?
entering the House of Pain?
like Thelma and Louise, heading for a clifff?
turned off the freeway and into Panic City?
Hmmm... Markets are... Are... What was the word?
Transitory.
On edge?
manipulated
FWIW most Greek shipping companies are very opaque to investors.
I think they are very clear. The owner rips off everyone else and pays no tax. The latter legally in Greece.
Nearing but not crossing the event horizon.
EURO SDR's ANYONE?
http://silvervigilante.com
Vaporized
I just vaporized some bud
Feeling pretty calm about the Greece and the euro debacle at the moment
I think Spain is in a pretty precarious situation. They couldn't even capitalize bankia, instead turning to issuing bonds to use as collateral ! What is going on over there? This is the big news story.
what about the 3 bigger spanish banks?
We should pay close attention to what the people of Greece do..........after all, our turn is just around the corner.
You are right. And before the banksters get us killing one another, we should go get them first. Let's not get caught up in foolish bickering and misdirection but go to the source and chop off the head and the body will die.
I'd say Newedge gets about two orders a year in Greek equities. The thought that counts though I guess...
No trading in the US Monday. Stampede Tuesday?
38 hours to come up with a proper set of lies that will underlie their flooding the market with control P.
I don't think so. I'll bet we're back to a slow push upward for a few days. Market is due for a reversal and with so many indexes worldwide oversold, I think it lights up green before the next leg down.
I won't purchase a new short until it seems futile to do so.
Wimps.
Get in there & buy buy BUY...!!!
Turn those machines back ON!
I prefer Portugal.
And here you are Mortimar, FIVE dollars.
Now, fork over the Ag Toz!
In some ways....I admire the Greeks ! They don't tolerate high taxes and are very committed to evading them ! That's totally admirable ! The big Euro-Socialist money machine throws a bunch of credit their way and they scoop it up with both hands....knowing they can't possibly pay it back ! I've done the same with my credit cards ! They are socialist pigs....but when the opportunity came to scam the big fish socialists....they scammed them good ! It's kind of like welfare fraud....or a "welfare bubble" ! I'm enjoying every delicious moment of the spectacle....socialists fucking other socialists ! Monedas 1929 Comedy Jihad Funny Shit You Don't Have To Embellish
Lagarde is creepy. She forgets that the halving of Greek salaries and pensions is already the equivalent of a 50% tax.
She will regret her words when future events unfold.
no she won't, she's a cunt
"socialists fucking other socialists"
lol...I feel a little dirty watching this unfold too...domination was never my thing ;-)
Monedas, sounds like "fraud warfare"....but your description seems lugubriously cogent
French banks SocGen and Credit Agricole, both of which have some of the worst CT1/TA ratios in the known universe, and which are the JV participants of Newedge, have also decided to pull the plug on.....Newedge too. Been trying to sell it for a while now. Some talk they may have succeeded amazingly.
French banks went insolvent in November 2011 after MF Global pigfKing Corzine's debacle. It 's all been DSK little-head-led scandals and smoke and mirrors since then.
Both Corzine and Dimon thought they had the Martingale strategy in place, but the Fed couldn't print up the numbers they blew out.
Just my opinion. This is the rats climbing on top of another rat to keep from drowning.
Once that process starts - it goes until one rat is left.
This is not the world threatening Greece if they don't do what they want. It's impossible for Greece to do what they want. This is a dividing up of the spoils. They are saying Greece is done and there is no stopping it.
How can I minimize my losses.
Instead of spending money to print crisp Drachmas, Greece should switch to a Facebook backed economy.
The shares are just sitting there not really being used by anyone.
I say kill two birds with one rock!
... or two rabbits with one shot.
So instead of Drachmas, they'd have "Likes"?
Yes. For every thousand likes that one receives, they get a share of Facebook with which they may purchase a slice of Feta cheese or a soda.
This is a self sustaining virtuous cycle for everyone involved.
As the Greeks "like" each other thousands of times per day, Facebooks share price goes through the roof.
As any Morgan Stanley dog and pony huckster knows, Facebooks real value isn't about making money, it's about total number of "likes".
In a very short time, as the Greeks Facebook shares go up in value they will eventually be able to swap a Facebook share for a really awesome sandwich or maybe even a squirt of Diesel for their aging fleet of Yugos.
If things get really bad, and it looks like the cascade has begun, we'll need a war or something and right quick!
Indeed!
When setting out to remold the world nearer to ones hearts desire, one must first set the world on fire.
With any luck, after 5 or 6 billion excess people are slaughtered, we can finally live in a land of peace and harmony and abject slavery.
Bully!
We could well be seeing the economic rape of a nation and the eonomic genocide of a people that have written many brilliant chapters of hitory.
We need to look beyond Greece and to reflect on what has already happened to us and what isto follow.
Don't let go of the big picture otherwise we will become like the proverbial frog in the boiling water.
great article.
If the bankster tacticts fail then they'll move ALCIAda in and then peace keeping forces and kill the opposition, they'll kill everyone if they have to.
Same thing here in the US. That's the NWO terrorist banksters. That is how they operate.
Maybe what we should do is what they always encourage us to do, go over there and fight before it comes over here.
The entire world is awash in debt that will never be repaid (even China). To avoid a collapse in 2008 the sovereigns stepped in and guaranteed/bought all financial assets that were beginning to fall apart (and started to borrow and spend on a massive scale to keep the economy afloat). Every metric is off the charts and yet here we are almost 4 years later tip toeing around with our heads in the sand leaving the entire system in the hands of the same crooks who created the mess in the first place (with no penalties handed out). One by one the weakest countries are becoming wards of the central banks/IMF who continue to buy their worthless bonds so they can service their existing debt and carry on the pretense they are a functional system. All a charade, corruption is systemic, and the system too complex to understand and even that which could be understood hidden from the public (dark pools, mark-to-model etc).
And so we watch the charade slowly fall apart knowing that Greece is just the first step...hoping that our country will escape, and somehow our way of life will carry on.
There is a need for a leader who will clean up the mess. And when he arrives and takes charge, who will depose him when the work is done?
A man of action will emerge from the chaos and take control.
The only question is: "Can Janet Napolitano run the TSA/DHS and the World economies at the same time?"
No one person can solve this problem unfortunately. We need a great changing of the minds moment. A complete shift in what mankind believes in. Perhaps it is in our future, but not any time soon by the looks of it
Euler Hermes
A mathematical god if ever I saw one.
Inviscid flow, oops, wrong Euler.
Cue the summits, especially those meetings between Merkel and Hollande. They will be seen holding hands while skipping down the hall, smiling, saying they will have a Greek debt solution but it will be announced at a later date. If last year's crisis management is to be repeated, expect nothing but ramps in the markets from 2:30 to close. Selloffs, Athens bourse excluded, will not be tolerated.
Welcome to the rigged marketplace.
As for the Greek people, give the banksters the middle finger salute. There will be pain along the way, but the future will be yours to own.
"Cue the summits..."
Yes.
I fully expect yet another strongly worded statement filled with ambiguity and the promise of follow up summits, state dinners & photo ops...as they try to decipher how best snatch their assets out of the rest of the periphery.
This calls for immediate discussion!
We need to schedule a meeting to discuss the meeting we'll need to have to plan the summit.
Europe. Led by the pointy haired boss in Dilbert.
A clueless limp wristed fist trying to hit you in the face but missing ... forever.
Next up is not having enough money for the election. EU will appoint an interum gov't to carry out the wishes of the troika.
Lagarde's comments re: time for the Greeks to pony up and pay taxes when the unemployment rate is over 20%, businesses are closing and tourism is hit with a baseball bat tells me she is a cold fish.
I don't want to pay any taxes that go to IMF. Let her lose her job and have the tax man come after her so she can see what it is like.
All the greeks need to do is what we do in the US..tax the citizens to death like they do in this car rental in Phoneix.
Car and Rate Information:
Standard
Ford Fusion or similar
140.00 USD (1 Week @ 140.00)
0.00 USD (Drop Charge)
36.00 USD (CUSTOMER FACILITY CHARGE 6.00/DAY)
15.55 USD (CONCESSION RECOVERY FEE 11.11PCT)
9.58 USD (VEHICLE LICENSE SURCHARGE 5 PCT)
6.23 USD (STADIUM SURCHARGE)
21.65 USD (TRANS PRIV TAX)
Total Charges 229.01 USD
I have to pay for a fucking stadium I have never used..wtf
You're lucky they forgot the:
4.96USD (Tire Roatation Fee)
2.49 USD (Radio Usage Fee)
14.87 USD (Car Company CEO Golden Parachute Fee)
Next time you may not be so lucky.....
and stop extending margin loans for existing positions in Greek securities...
They were lending money for the purchase of greek securities while using said securities as collateral?
Say it ain't so!
Dow Futures up 60
We need more flow.
Yes, noone should borrow money they cant pay back. So you ask your dad what he paid for is house in 1960 in a rural neighborhood and he says 2-3x avg annual income. So you go out to a rural area and find the homes are 7-10x annual income. It doesnt matter if one person doesnt boorw, if enough people (or companies) borrow, the rest wont have a chance at a car, a house, commercial real estate, business equipment, without borrowing.
Right, b/c the people who waited for debt-inflated asset prices to PB and normalize; they got screwed again when the govt stepped in and supported those prices.
i am buyin anthing i can that we import from greece. its the least i can do.
for those who want to rant about individual responsibility, please give me a break.
in a system rigged for the rich; in a land of no democracy; on a planet run by the business of corporations, (each of whom has outlived any, all, and every one of its temporary human 'heads')... for someone to judge those stuck at the bottom, is shallow thinking. theory is theory is theory. until its not. reality is. always.
level the field, i'll be glad to run with that approach. just level the field first.
you know fellas. i am amazed. of all on the planet, the zh group is one that actually can effect change the planet. for the bettor of people.
may be that you just don't see. an example:
all know greece is taking one for the team. they are gonna pay the 'price'. we, the rest of the planet, can simply thwart their pain.
no matter what, there is simply no beating 'buy made in greece' as a systemic response by 'we the people' to the big BIGs.
there are too many of us. we need only 'trivial' response from our masses to beat their rehypothication.
i tell you what. i'll go over to chris floyd's site. clue him in. greenwald reads him. that brings this wallowa mountain man's contribution to stickin his neck out there ready to be a fool's fool. tell him about "buy made in 'wherever' ". populist weapon of mass redistribution. a lot to say in few words...
but, hey. chris will sort of remember me...kindly, my guess is...and i'll go from there.
beware giving gifts to Greeks. The Greek people were no heros in this myth - meaning in the worldwide massive departure from reality that is the new human condition.