As Predicted On Friday, Dexia CDS Rips And Stock Implodes On Partial Nationalization

Tyler Durden's picture

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GeneMarchbanks's picture

Epic Fail. It begins... Deutsche Bank just joined the race to failure, good to see the race heating up.

Tyler Durden's picture

Or, instead of linking to tabloids, you can go back in ZH archives to February 2010, when we showed this data for the first time.

GeneMarchbanks's picture

The Swiss got Waffles beat...

The PolyCapitalist's picture


Great chart, but I assume that for Dexia you used just Belgium's GDP and not France's?

Both countries are bailing out Dexia so it would probably be more accurate to add together the GDP of both countries for Dexia's ratio.

EscapeKey's picture

Would be nice if net notional derivative positions were added to these charts; I doubt the American banks would look as healthy if they were to be.

Dingleberry's picture

Christmas is coming early!! Now if Goldman would go down too..

Reptil's picture

Eeeermmm... How can you nationalize a bank (transfer toxic assets to the public account) when there's not even an elected government?

Oh the European Commission is the government, you say? Ah yes.. Mais Oui!

Timberrrrr.... (Attention, les Arbres!)


Dick Darlington's picture

Last time, 2008-2009, when Dexia was bailed out, the liability cap for governments was 150 billion. It was splitted btwn the governments as follows: Belgium 60,5%, France 36,5% and Luxembourg 3%.

Expecting Belgium downgrade pretty soon...

eigenvalue's picture

If France wastes so much dry powder now, will it have enough capacity when Socgen, BNP and CA need help?

slewie the pi-rat's picture

<zombies quietly shuffling paper>

HedgeAccordingly's picture

GOOD MORNING VIET.. errrr i mean Eurozone

papaswamp's picture

How do coutries deeply in debt 'back' anything? This literally is a game of 'let's pretend'. They are already trying to back other countries and now this? Seriously....when is an adult going to say, I'm sorry this is reality, the game of pretend is over.....

I wish I could pretend I have millions and go buy what ever I want...just tell the merchant I guaruntee that payments will be made....

jbc77's picture

All they can do now is keep playing pretend. Thats how desperate the bankers are. Did we expect them to start telling the truth. The truth won't come out until an absolute and utter meltdown occurs....again. We are living in a modern day financial Twilight Zone. They will pretend until the can pretend no more. Grab some popcorn, this is gonna get good...the math never lies and always catches up in the end.

nonclaim's picture

How do coutries deeply in debt 'back' anything?

Full faith in the government... errm, if they had one, maybe.

So, let's pretend and all is well!

Drag Racer's picture

How much did the Koch brothers have on deposit at Dexia?

nmewn's picture

All this burning paper.

Perfect timing...its getting cold.

wombats's picture

Since I don't own their stock and do not do business with them is there a reason for me to care about Dexia's fate?

richard in norway's picture

yes because it can/will pull other banks/finacial institutions down, watch those credit default swaps go bang

EscapeKey's picture

I bet that's what people said about Kreditanstalt as well.

Migrated Bird's picture

Good Call ZH. Impressive. Not sure if I should be happy or sad. Cause if all your calls turn out to be right like this, we are looking at financial armageddon..

The Axe's picture

Two for Tuesday....ZH  and those young people keeping their protest on Wall Street alive. Well done...

BandGap's picture

The disconnect between mainstream reporting to the masses (eat the cheese, please) and reality is widening.  Or at least lacks the detail for proper inspection.  Or even worse, we have a population with their heads in the sand worrying about Tom Brady and NFL spreads.  Sad and frightening at the same time.

The winter of discontent looms. 

Dick Darlington's picture



sabra1's picture

if BAC can have downtime, why not Dexia? what's wrong with them!

Mister Ponzi's picture

Why is it necessarily positive for the CDS when Dexia is nationalized? I remember the nationalization of Fannie Mae and Freddie Mac which triggered the CDS of both entities, and the corresponding auction led to losses in some CDS classes.

Mike2756's picture

Yeah, it seems like only the depositors are being protected.

Mike2756's picture

Partial nationalization? No more bailouts for the bonus babies?

Peter K's picture

I think we are all missing the point. The restructuring is to allow Dexia to "open new branchs in France and Belgium". Don't you people read :)

dcb's picture

yes, but you forgot the follow up headline. management walks away wikth millions in bonus money from the tax payer

BlackholeDivestment's picture

 It was reported in the EU news today, Belgian Frogs, with a financial virus known as ''Dexia'', attacked Labor. A trader on the floor was heard to have shouted out '' it was Lord of The Flies ...Bitchez''.

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