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Europe’s Banking System Is Breaking Down Again Greece’s four largest banks need to boost their capital by 27.5 billion euros ($36.3 billion) after taking losses from the country’s debt swap earlier this year, the largest sovereign restructuring in history.
National Bank of Greece SA, the country’s biggest lender, needs to raise 9.8 billion euros, according to an e-?mailed report by the Athens-?based Bank of Greece (TELL) today. Eurobank Ergasias SA (EUROB) needs 5.8 billion [...] by Phoenix Capital Research
Europe’s banking system has been on the ropes for years. It’s a little known fact that the largest recipients of US bailouts were in fact foreign banks based in Europe. Also bear in mind that the biggest beneficiaries of QE 2 were European banks. Things got so bad in mid-2012 that the whole system lurched towards collapse. The only thing that pulled the EU back from the brink [...] by Phoenix Capital Research
By the look of things, Europe’s banking system is breaking down again.
Bankia’s shareholders have received a nasty new year’s surprise. They may lose most of their investments or even all of them says the Spanish bank rescue fund in its latest report.
According to FROB, the Fund for Orderly Bank Restructuring, Bankia has a negative value of 4.2 billion euros, and its parent group BFA is 10.4 bn in the red.
Valuation [...] http://www.twitter.com/EKourtali Reuters If Greece left the euro, living standards would plummet, incomes would be slashed by more than half, and inflation and unemployment would skyrocket, the National Bank of Greece warned on Tuesday. In a report released ahead of an election on June 17 that may determine whether the country stays in the single currency, the country’s biggest bank said the risk of Athens exiting the euro was no longer just a theoretical possibility, warning [...] The inevitable result of the Left’s policies — unchecked deficit spending, powerful public sector unions, easy access to welfare, and open borders — is now unfolding in Europe. The endgame is certain to be as profound as it is cataclysmic. “ …Worries about a run on Greek banks have rattled Athens this week, after savers withdrew at least 700 million euros on Monday alone, according to minutes of Papoulias’s comments to political leaders [...] Greek bank stocks basically just behave like broader European markets, except in an extremely high-beta exaggerated manner.
Today Europe is getting smoked. So Greek bank stocks are getting killed. Piraeus Bank is off 10.5%. National Bank of Greece is down 4%. Alpha Bank is down 5.7%. Anyway, in addition to the political problems, the country is quickly running out of cash again. Dow Jones FX Trader cites a news report saying that PM Papademos has warned that the country [...] As the deadline for participation in a writedown of Greek debt approaches, six of Greece’s largest banks have reportedly lined up to take part in the deal. Several pension funds, however, say they will refuse. Six of Greece’s largest banks and eight insurance funds have confirmed they will accept the massive devaluation of their government bonds, Finance Minister Evangelos Venizelos said on Wednesday. The six banks – National Bank of Greece, Eurobank, Alpha, Pireaus, [...] Greece’s creditors are resisting pressure from the International Monetary Fund to accept bigger losses on holdings of the indebted nation’s government bonds, said three people with direct knowledge of the discussions. Lenders want the 70 billion euros ($91 billion) of new bonds the government will issue in return for existing securities to carry a coupon of about 5 percent, said the people, who declined to be identified because the negotiations are private. The IMF [...] The eurozone has “already collapsed” and is disappearing as the region is on the brink of a banking crisis that will destroy the currency, said Zafer Onat, the chief executive of FinansInvest, a Turkish broker owned by National Bank of Greece SA. (ETE) “I believe that the European monetary union doesn’t exist anymore,” Onat said in an interview in Istanbul today. “I think it already collapsed but no one has said [...] LONDON—Moody’s Investors Service Inc. downgraded eight Greek banks by two notches Friday, citing expected losses due to their holdings of Greek government bonds, increasing concerns about the impact of a recession as well as fragile liquidity and funding positions. “The government faces significant solvency challenges and historical experience shows that small sovereign debt restructurings have often been followed by larger sovereign defaults,” Moody’s warned. National Bank of [...] Alas, it is not a liquidity problem, it is a solvency problem. After delaying this realization for over two years, Greece, and Europe, are about to understand just how flawed “bailout” strategies that address the symptoms and not the cause, have been since the beginning of 2010. And while the world is engaged with the latest victim of the Bernanke-inspired, food-price inflation political upheaval better [...] From FT: Greece’s four largest banks agreed to take up a €50m convertible bond to help recapitalise Proton Bank, a small lender, the central bank announced this weekend, in what is being seen as an attempt to avert a run on the country’s fragile banking system. The deal came ahead of an expected announcement this week that several Athens lenders plan to seek emergency liquidity assistance from [...] A wooden sculpture of a man’s head locked in a vise sits on a cabinet behind Aristotelis Karytinos, general manager of real estate at the National Bank of Greece and a government adviser on the sale of state assets. “That’s how we’re all feeling lately,” says Karytinos. Greece has committed to raising an unprecedented €50 billion ($71 billion) from state assets by 2015 as part of plans [...] In what’s being viewed as a desperate attempt by Greek Prime Minister George Papandreou to push through needed austerity measures, the embattled leader announced late the prior day he would form a new government Thursday. Protests swept across the capital, sometimes turning violent, against the measures the country needs approved in order to get a new tranche of bailout funding. “A new government is set to [...] From S&P: Overview We are of the view that Standard & Poor’s rated Greek banks’ financial profiles are exposed to significantly heightened risks as a result of deterioration in Greece’s creditworthiness and Greek depositors’ perceptions of a possible government debt restructuring. by carebear France – 19€ The tax on the Greek one was higher than the UK purchase price, and the UK price included VAT…The most expensive in Europe was Greece, across a range of items this is the case. White goods are the most expensive in the EU Petrol here touched 1.70€ Ltr this week ( $10.29 a Gallon ) of which 58% [...] UK passenger traffic in August is down from last year: UK austerity measures with government cuts now risking 40,000 police officer jobs: UK Postal services to be privatised, with debate on massive job losses and increases in postal charges: Deutsche Bank tried to raise $11.4 Billion: There are announcements at very regular intervals, most days now about further cuts and austerity measures. Another item added on the BBC website about cuts in UK fire fighters, [...] |
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