UniCredit Reports Massive €10.6 Billion Loss On Estimate Of €7.4 Million Profit; Will Raise €7.5 Billion In New Equity

And whoosh:

  • UNICREDIT 3Q NET LOSS EU10.6 BLN; ANA EST EU7.4 MLN PROFIT

We haven't seen the press release, but we have a sinking suspicion the bank's "perfectly hedged' sovereign exposure, when all the accounting gimmicks are said and done, will be the culprit.

In other news:

  • UNICREDIT SAYS WRITEDOWNS EU9.77 BLN NO IMPACT ON CASH, RATIOS
  • UNICREDIT TO ACHIEVE POSITIVE NET INTER-BANK POSITION BY 2015
  • UNICREDIT WON'T PAY DIVIDEND ON 2011 RESULTS
  • UNICREDIT RIGHTS OFFER TO BE AS MUCH AS EU7.5 BILLION
  • UNICREDIT 3Q LOAN LOSS PROVISIONS EU1.85 BLN

And the natural conclusion:

  • UNICREDIT RIGHTS OFFER TO BE AS MUCH AS EU7.5 BILLION
  • UNICREDIT FURTHER STRENGTHENING ITS LIQUIDITY POSITION - and further diluting its impoverished shareholders

This is just the start.

headlines: BBG