(Non) News Of Dexia "Bad Bank" Sends Market Soaring
If anyone had any doubt this market is broken beyond compare and controlled by complete idiots, this should put all doubts to rest. Anyone wondering why stocks are soaring, the reason is that according to non-news, because this was first reported yesterday by the FT, Dexia will park €180 billion in worthless assets in a bad bank. This is beyond ridiculous as Belgium, even in JV with France, will be unable to ringfence and hence fund this amount of capital for the now nationalized bank. It also means that Belgium is about to be downgraded following a long-overdue warning by S&P and Moodys to cut the country. It also means that Belgian CDS will soon trade points up front. It also means that Belgian funding costs will soar. It also means that French CDS will explode tomorrow and that interbank markets in Europe will collapse (even more) once the market realizes that France has just diluted its "bailout dry capital" by rescuing a Belgian bank. And so on. And so on. But for now the ripfest is here. Fade every uptick as this is sheer desperation out of Belgium which pretends it is Switzerland and can do with Dexia what the Swiss did with UBS. Hint: it is not and no, it can't.
From the WSJ Market Beat blog:
- Franco-Belgian lender Dexia is set to park assets worth in excess of EUR180 billion into a so-called bad bank, a vehicle backed by guarantees from the French and Belgian governments, in an effort to disentangle itself from gripping liquidity strains, people familiar with the matter said Tuesday.
- The bad-bank plan is part of a deeper makeover under which Dexia is considering selling all its core units and which may effectively lead to a dismantling of the lender.
- Under a plan submitted to Dexia’s board on Monday, the bank would ring fence into a special vehicle all the assets it inherited from an aggressive expansion push early in the past decade as well as units that can’t be sold under current market conditions, the people familiar with the matter said.
- These assets would include a portfolio of bonds worth EUR95 billion and about EUR30 billion in loans deemed non-strategic, they said. Dexia Crediop and Dexia Sabadell, the bank’s municipal lending units in Italy and Spain, respectively, would also be folded into the bad bank, the people familiar with the matter said. The European sovereign debt crisis has cast a cloud on most financial assets in Southern European countries, making it virtually impossible for Dexia to find buyers for the two units.
- Over the past year, Dexia had succeeded in reducing short-term financing needs stemming from its large portfolio of long-term bonds. Yet, in recent weeks, the bank was increasingly struggling to raise funding at affordable costs. With little hope that liquidity strains would ease in the short term, management came to conclusion that Dexia could no longer carry the oversized bond portfolio alone, one person familiar with the matter said.
- In a first step, Dexia may continue to carry the bad-bank vehicle on its books, but France and Belgium will give its guarantee to securities the bank must issue to meet refinancing needs, the people familiar with the matter said. Longer term, Dexia may transfer bad bank ownership to France and Belgium, these people said
(7 votes)
»
- Login or register to post comments
- 14898 reads
- Printer-friendly version
- Send to friend
Similar Articles You Might Enjoy:
- De Tijd Reports Dexia To Be Nationalized
- The Latest Dexia News: Nothing Set Yet, Despite $4 Billion Proposed Purchase Of "Good Bank" By Government, 60% Of Belgium Bad Bank
- Dexia Suspended
- Dexia's Belgian Bank To Be 100% Nationalized
- BIG PIS: The CEO Of Europe's Most Troubled Bank, Dexia, Quits As Contagion Tsunami Sweeps Over Belgium
Yeah... cause you know... that will solve everything... it's all sunshine and unicorns from now on.
Wow. Absolutely frigging nuts.
Some relevant music:
Drexciya, bitchez
Digital Tsunami
(Chosen in honour of all the algos, and in honour of the massive tsunami of defaults we'll see when Greece goes under)
http://www.youtube.com/watch?v=jvHDucE6vhM
pulling from the archive
http://www.zerohedge.com/article/presenting-total-bank-assets-percentage...
Compare that to the top 5 banks in the US (a list which excludes hedge funds such as Goldman Sachs).
Unfortunately for Europe, there is a dramatic concentration of bank assets precisely in some of the most precarious regions. Which is why Germany may have kicked the can down the road for at least a month, but the issue will come back with a vengeance for the simple reason we have noted from the start of this crisis: only Bernanke has a money printer. Everyone else actually has to produce "stuff", sell it and collect taxes if they want to fill catastrophic budget deficits. And the latter, as we have seen, is something the developed world has been horrible at doing over the past decade, courtesy of the Goldman-facilitated innovation explosion.
Asia-> America "capitalism"
America-> Europe "socialism"
Europe->Asia "communism"
Africa...fucked as usual..."colonialism"
The ALGO must bid it up before it can sell it off. Must hit targets, must fill gaps, must retrace, must must must.
The Bank of America in St. Louis is surrounded by cops and barricades refusing to allow customers in to withdraw money. They're telling them that they have to use ATM's or do their banking on-line. Wait for it, it's coming to a neighborhood near you.
Riots, it's what's for dinner.
Is this a joke or for real? Can you cite a source?
I wish I'd had my camera yesterday, the parking lot at a local BAC was absolutely packed. I thought business was booming.
Or maybe acct closings.
The website being down for several days looks like an on-line bank run. Something smells rotten. Maybe I'm just paranoid.
well its not raining in STL today, and that video has people carrying umbrellas.... something is off.
It's not rain, it's tears
http://www.shtfplan.com/headline-news/swat-teams-in-st-louis-protecting-bank-of-america-refusing-customer-withdrawals-directing-customers-to-broken-bofa-web-site_10042011
here is the story
Shenanigans. That video is from Aug 12 2011 during a rally in which people were protesting.
You can't protest at a bank, duh. <snarf>
Putting your deposit into Banksters of America is entrusting your grandfather's trust fund into Goldman Sach's hands.
Shenanigans. That video is from Aug 12 2011 during a rally in which people were protesting.
You can't protest at a bank, duh. <snarf>
http://www.youtube.com/watch?v=Db_P0wHsSz0&feature=player_embedded#!
They seem to do this often:http://dangerousintersection.org/2011/08/13/bank-of-america-forbids-withdrawal-of-money-protest/
source, link, proof?
Is it 3:30 yet? Yep, right on Q!
Welcome to the Truman Show.
Loving every minute of this--watching these desperate fucks try sooooo hard to stop the bleeding, only to have the credit markets come along and chop off the other arm. "It's a bloody flesh wound! I'll gnash you with my teeth!" Hahahaha.
Wait for it because the arms are now gone, next will be the legs so that it can't run while it gets put down.
Btw where did you get that coconut shell?
Run Away!!!!!!!!!
And the unicorns shit "Skittles" too...
Yea, no kidding. Sunshine and Unicorns here we come. This is what you call EPIC FAIL!!!!!!!!!! Now what about the servicing of the debt (180 billion euro's) that must be sent out to all the bond holders including Belgium, who's going to pay that? If Belgium (I don't know why they are calling this debt backed also by the Belgium govt., because didn't they dissolve their govt. over a year ago?) can't service this debt, then essentially what they did was say we are defaulting.
Bear Stearns.
Tyler is getting picky, picky, picky...
You can't expect markets to look forward 24 hours, er, 8 hours, uh, oh whatever.
Dexia stock going to zero. France going to be put on ratings watch. Short this rally
BAC is black.
The stock market is not rallying because of that supid bank news, it is going up because Kim Kardashian has bought a Ferrari, we should all buy one now we know what to drive.
MS ramp to the moon! Short the EOD BS.
Epic rally is epic
Epic dollar fall is epic.
I assumed it was because investors were optimistic that the Japanese might learn a thing or two about entombing toxic shit from this exercise.
Fade this BS
Whew! I was getting worried there for a bit.
A bear rally that lasts 2 or 3 days can kill you though...
I'm so glad I covered my shorts this morning. I'll keep an eye on my candidates and put it back on once they show weakness again
These vacuum tubes are as clever as the chairSATAN
they have to keep squeezing shorts to keep the 'markets' from collapsing.. yeah, healthy that is
Another press release to the rescue.
Big dollar dump there in the last 40 minutes.
yep...and the front of Bob Pisani's pants just exploded.
What the hell ???? Ha ha just noticed S&P and Dow charts looks like this W
Edit: That lasted for about a minute - can't believe this crap!
must.... close.... green....
Nah it is the weak story by the FT about some coordinated EU plan to recap the banks.
Amusingly the Spanish Finance Minister came out this morning after the meeting and specifically said the the EU ministers DID NOT talk about a recap plan.
There is an increasingly shared view that we need a concerted, co-ordinated approach in Europe while many of the elements are done in the member states,” Olli Rehn, European commissioner for economic affairs, told the Financial Times. “
So there you have it the mouth piece of the EU versus an actual Finance Minster.
Amusingly the Spanish Finance Minister came out this morning after the meeting and specifically said the the EU ministers DID NOT talk about a recap plan
I guess they discussed it in the afternoon session...
"Amusingly the Spanish Finance Minister came out this morning after the meeting and specifically said the the EU ministers DID NOT talk about a recap plan"
I guess they discussed it in the afternoon session...
Well Tyler, you've sum it up as it is! And the thing is the markets will hopefully realize tomorrow that things are indeed as you wrote and then turn south.
And the DOW moves to positive territory.
Manic-depressive psycho clownfest.
All day trading profits erased in 30 minutes on this idiocy... gotta love this market.
You day-trade in this?
ADP leaked rally
Exactly. +300 up tomorrow on fabricated stats.
Banksters breathe a sigh of relief as more junk offloaded to the poor and sick
I thought BB farted.
Once these back office monkey wanna-be fake ass Timmy Sikes day trading douchtards cover their shorts and go crying home to mommy, the market will snap back to reality and realize it is game-fucking-over-bitches.
yippee ky yeah
The bottom is in!!!!!!
The bottom is in!!!!!
Oh wait there's tomorrow yet. OK after that I"m sure the bottom is in.
Oh wait there's the day after....................................
In machine world - everythang is possible.
Thde Belgians are suffering from acute dis-Drexciya...
Jetison the trash. Sure.
So ... there shan't be any bonus? Right?
lol.. the markets are so fucking broken.. Daytraders must being having nervous breakdowns with all the volatility. trading algos never sleep.
short 20 more /es from 1104.50
bring it
Ouch that was painful to watch. Next time consider checking your shields before asking for the most sinister and powerful force in the universe to open a can of whoop-ass.
still 10mins left, triple digit gain anyone?
We just might....
but actually, this is a rally to get as much shorts out as possible, the news is just an excuse.
The key is the bonds... IS THE TOP IN ?
That was one hellofa market ramp up +300 points in 40 minutes. That may be one of the top ten market ramps in history !
Was that a POMO injection or what ? WOW !
This market is so fucked up ! How anyone has the balls to joust against these HTF computers is amazing to me. I have a question: Who are the ones losing all the money ? It's coming (being extracted) from somewhere ?
anybody know ?
QE3 after close?
I remember the bad bank piece from Monday. This is pure HFT action. On the other hand, not only do you have hundreds of billions of Greek toxic bonds, you now have toxic French paper lifting its vapours through the boulevards.
Royal Flush Crush
This is insane
Fast Dash
Fat Trigger Finger Blast
yeah, that fixes JACK SHIT.
fucking cocksukers.
Wow... just fucking wow.
Talk about some shock and awe.
Must be near to Wall Street bonus time. The bounce most pronounced in crappy bank shares.
I have benn trading since 1983 but what I saw fro 3 years in a row now is utterly sick and for sure won't end well, no matter how long it might still take but thelonger it goes this way the more catastrophic the outcome!
I closed shorts this morning but put on new ones just a little while ago! I won't miss this opportunity to be IN when this shit goes to 1000SP points in short order!
I love this place. Thanks Tyler, was watching the tape and thought WTF. Hold those shorts kids. My plan is to dump them later in the week, then wait out the fake rally, and then enter again. Evidently the hedge funds need some cover to dump. Shocktober, here we come....
Why don't they just announce what the DOW is?
A 250 point vertical climb in about 20 minutes sounds plausible to me.
pods
Stay vigilant my fellow shorts
Making a complete mockery of the entire system....classic
It's ok to close up one some rumors, I am selling this top.
Who will finally eat this turd when the day of reckoning arrives? WTF is going on? This is like a 27 inning baseball game and when it is over someone has to lose.
This is only the 3rd inning too, get some peanuts.
Aah, You can see the green shoots rising all over! Only in this case you have a bank in the country that shall not be named, so Green Sprouts. Inedible cabbage foisted off as food for centuries. On this and gunmaking they base an economy?
Wow. I'm calling this the Agita Market. I don't think the bots heard the occupy protests.
Twilight zone
/ES up 45 points in 45 minutes. What can possibly go wrong?
Twilight zone
Rip meet face
Up +170 points now ??????????????????????????????????????//
400 point swing in 50 minutes ??????????????????????????
WTF !
desperation... anything to peek it alive. Turds fall from the sky + 500