Two More European Banks Nationalized Following Dexia's Example

Tyler Durden's picture

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papaswamp's picture

Algos won't notice...Rally and haircuts Bitchez!!!

GeneMarchbanks's picture

The market loved the Dexia deal so let's just nationalize it all.

'Proton's woes erupted this summer after it disclosed it was being probed by the central bank on money laundering violations related to transactions by its main shareholder.

 "The activation of the Financial Stability Fund for Proton Bank has nothing to do with its exposure to Greek sovereign bonds but it has to do with its bad loans' portfolio," said a Greek-based bank analyst who declined to be named.'

Even 'openly' criminal lenders are bailed out... nice.

TheFourthStooge-ing's picture

"The activation of the Financial Stability Fund for Proton Bank has nothing to do with its exposure to Greek sovereign bonds but it has to do with its bad loans' portfolio," said a Greek-based bank analyst who declined to be named.

The unnamed Greek-based bank analyst failed to point out that Greek sovereign bonds are a part of Proton Bank's bad loans portfolio.


achmachat's picture

This just in:
KBL in Luxembourg bought by... wait for it... Katar!!!
Somebody is bank shopping over here!

GeneMarchbanks's picture

Qatar heart Europe. Makes for warm fuzzy feelings. Europe 60% off sale.

Schmuck Raker's picture

Sure to be a winning investment. [eye roll]

Irish66's picture

A fool and his money are soon departed.

Bananamerican's picture

" the sands trickle off the eyelash of the camel, oh great ship of the desert!"

gojam's picture

"Proton's woes erupted this summer after it disclosed it was being probed by the central bank on money laundering violations related to transactions by its main shareholder."

Says it all really, doesn't it?

“Max Bank had fallen into a regrettable situation,” Sohn said. “The FSA’s inspection showed that the bank no longer lived up to its solvency requirements primarily because of its engagements within real estate.”

AKA, the Irish Disease.

Paralympic Equity's picture

Tyler, it's rally monkey time only in the European markets that foreigners look at, but look at Austria and eastern Europe...they don't seem happy at all. Erste bank having a lot of problems in eastern Europe, and Italian banks following, just wait.

Gandalf6900's picture

As I said previously, Italian banks are FINE didn't you get the memo, even the mkt has confidence in the Italian Banks, until it doesn't

DogSlime's picture

Shouldn't CDS's be triggering all over the place after Dexia and now this?

Dick Darlington's picture

My guess is that it will be more of the same (fraud):

"Judge rules, no violation"

westboundnup's picture

Are countries nationalizing banks, or are banks nationalizing countries?

Gandalf6900's picture

good point, I've been trying to answer that question for a couple of days now...I think the answer is "our kids are getting raped"

j0nx's picture

Only happening because the people allow it. OWS ought to be outside DOJ HQ and the SEC HQ in DC asking for all senior execs to come out and surrender to the American people for trial. Instead we piss and moan on the internet and march around wall street when most of the really guilty parties aren't even there any more.

Gandalf6900's picture

On this news and other alike Unicredit soared 30% in 2 weeks...makes a lot of sense!!!

Everything fixed, move along!!!

papaswamp's picture

Looks like the Danes are in serious trouble bank wise....

"The government last month passed Denmark’s fourth bank rescue package since 2008. The bill seeks to spur consolidation and help banks sidestep the country’s bail-in laws by subsidizing takeovers before a troubled lender collapses. The specter of senior creditor losses has cut off most of Denmark’s roughly 120 banks from international funding markets. About 75 regional lenders need either to be wound down or bought up, according to Henning Kruse Petersen, the chairman of the Financial Stability Company."

4th rescue package since 2008???? WTF batman?

Poor Grogman's picture

Wow this Euro experiment is going well now isn't it.

I can feel a Northern Rock moment coming on.

Dick Darlington's picture

And of course all the recent failures in Spanish caja's have been shrugged off as transitory and meaningless. Simply stunning...

flyr1710's picture

can't wait for the compression trade on this event....boom!

johnnymustardseed's picture

Europeans are stupid.. all you have to do to fix this crisis is lend them money at a quarter of one percent. Teach them to buy Greek bonds paying 40% and let them screw with the equity and PM markets. Problem solved!

oldman's picture

Wouldn't it funny if decades from today, we learn that the whole Ponzi collapse occurred from 'washing' the CIA's businesses?

The Onion Of Twickenham's picture

So Proton has been bailed out while it's being investigated for money laundering. Just what the fuck do you have to do before you don't get a bailout?

j0nx's picture

Oh hell yeah! Best comment of the day. This needs to get sent to everyone's Congress member.

s0lspot's picture

The humanity, The insanity...

Societal deconstruction in full march, the culprit is the victim and the victims are the culprits.


No matter how you look at it and what you believe, this is akin to some kind of societal satanic belief-system implemantation...poor kids won't be able to tell right (responsability, autonomy, value/wellness creation) from wrong (theft, lies and supreme irresponsability).


It's as if westcoast rappers (bitches, drugz, theft, "pop a cap") managed to reprogram the minds of washington politicians. Bad is Good. Wrong is Right (for them).



TheFourthStooge-ing's picture

In a world gone mad, lies are the truth.

In a world gone mad,up is down.

In a world gone mad, your mommy will rip off your head and feed it to the dog.

In a world gone mad, the leaders are evil puppets...


Volaille de Bresse's picture

We need our own Bernanke! Print 3 Tril of paper money, fill the gaps with them and voila!

Dick Darlington's picture


See, no worries at all. Everything is golden! No access to capital markets, bad loans soaring, cajas going under etc and still NO PROBLEMS!

kahunabear's picture

Risk on overdrive trade!

cbaba's picture

Final countdown..

HoofHearted's picture

This is ground control to Major Tom...oh wait, it was Thomas SARGENT that won the Nobel today. Congrats to a great scholar and a helluva guy. He spent an entire lunch shooting the breeze with me at a conference. Well deserving after work in five different decades...

pelagivore's picture

The real question is trying to understand when/how the bailouts will end.

Nationalisation must continue or the system fails and those in power lose their positions (a certainty), legacy (too late) and fortunes (unavoidable). That the system should have failed years ago which would have saved billions (trillions) and corrected massive imbalances is obvious but this reluctance to face reality surely serves as a template for the near future. The costs are now even larger so the incentive to avoid a correction is greater. Bailouts continue, money is printed and global growth is once again financed (or at least attempted). This time China is in a much weaker position... so success of this is less assured. 

The BoE has taken the first step in the latest round... ECB, PBOC and Fed are up next. Hyper-Keynesianism cannot be stopped (until the mob rips them to pieces of course). What a great time to buy gold for investors that have missed the last 10 years. 

Scalaris's picture

Today's menu: Nationalization with a touch of debt haircut, so take your seats ladies & gentlemen.

Which is worse - bankers or terrorists's picture

Clearly the answer here is to privatize all European pensions and let them play in the stock market. LOL :headexplodes:

MsCreant's picture

Bankolize everything. Bankolize NOW!

Bankolize everything. Bankolize NOW!

Bankolize everything. Bankolize NOW!

slewie the pi-rat's picture

Max Proton never rests till everything is Banko!

+++ msC!  sould like something they would do to a banking fabric to keep it from shrinking


disabledvet's picture

All eyes on Cyprus as the various wildfires become a conflagration.

Zero Debt's picture

What's the difference between a bank and a government department?

eurogold's picture

Isn't this evolving into the banking default scenario that happened in the U.S. recently? O.K. for other reasons, but still it all looks familiar. By the end of the week France should start nationalizing.

OffShorewHore's picture

Let them all nationalize as far as I'm concerned, more volatility in the markets -- short the usd/chf this morning -- means a better lifestyle in my P/L .

PulauHantu29's picture

Odd how this stuff never makes MSM headlines.

Thanks ZH!