The existence of capital controls eliminates contagion and makes it possible to bail-in deposits that would normally be considered to have systemic consequences. The more I look at it, the less benign this bailout deal appears. Indeed it looks to me as if it was set up to do considerable damage to the Greek economy. Once this becomes apparent, Greeks are surely likely to change their minds about staying in the Euro.Read more ›
Post Tagged with: "nationalization"
The shareholders and subordinated bond holders of SNS Reaal are now fighting an alleged expropriation at the Dutch Council of State. In addition, these stakeholders are contesting the Dutch government’s position that shareholders and subordinated debt holders cannot sue for compensation against the bank due to mismanagement at SNS Reaal. Clearly, the Dutch government, as the sole owner is looking to limit its liabilities.Read more ›
Nationalised Dutch lender SNS Reaal, the fourth largest bank in the Netherlands has recently been nationalised despite a reported 13 percent Tier 1 capital level in the most recent round of banking stress tests in Europe. Clearly, the stress tests weren’t particularly stressful. I would go so far as to say they were ‘phony’.Read more ›
In yesterday’s links, I pointed to two links showing that Ireland had regained bond market access. Here is more evidence that Ireland is regaining bond market access.Read more ›
That a couple of Latin American countries have recently announced the expropriation of foreign investors in the energy sector seems hardly like new news. After all, cycles of nationalization and privatization have unfolded for more than half a century. Moreover, the expropriation simply marked the latest illiberal measures by Argentina and Bolivia, the two protagonists here. There is significant risk that others will follow Argentina and Bolivia.Read more ›
A look at the fundamentals shows why Fernandez is engaging in such visible theatrics, which also includes recent vitriol regarding the Falkland Islands. Simply put, we think economic stresses are intensifying. How deep the stresses will get is yet to be determined.Read more ›
There have been a lot of people talking about Argentina as if it were the model for other governments in sovereign difficulty to follow. Yes, Argentina’s decision to default was realistically the right call given the crushing debt load. And that is the path the euro zone periphery is on. But, beyond this, I fail to see where Argentina is […]Read more ›
Belgian newspaper De Standarad reports that the folks at twice bailed out Franco-Belgian bank Dexia are looking for a new name for the company. Apparently, the Dexia brand has been tarnished.
Dexia is Belgium’s version of NCNB, now Bank of America, a small bank that grew enormously through expansion and acquisition.Read more ›
On Friday, I asked why CAM’s credit default swaps were soaring. This is why? Clearly someone had inside information.Read more ›
If you recall Global Macro Monitor’s post on Europe’s Bank Problem last week, the IMF chart showed very well how banks were struggling to wean themselves from short-term funding sources and increase tangible common equity. The Belgians had made Herculean strides in this effort. But it has not been enough.Read more ›