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  • Stability Of The European Union June 2, 2014 To ??? [View instapost]
    August 1 - Banco Espirito Santo Shares Suspended After 40 Percent Drop.
    From: The Washington Post and Bloomberg.

    The stock was trading down 40 percent at 12 euro cents before the CMVM suspended trading at 3:42 p.m. local time. The decline followed yesterday’s 42 percent slump.

    Banco Espirito Santo’s 750 million euros of 7.125 percent subordinated bonds due 2023 plunged 18 cents on the euro to 36.3 cents, a record low.

    Investors are concerned that subordinated bondholders may be made to take losses in a rescue bail-in.
    Aug 1 03:02 PM | 6 Likes Like |Link to Comment
  • Quickchat#272, June 16, 2014 [View instapost]
    Hang in there Guns and take it easy with that epidural.. no summersaults. :)
    Aug 1 08:17 AM | 3 Likes Like |Link to Comment
  • Stability Of The European Union June 2, 2014 To ??? [View instapost]
    Some of those "Unexpected Facts" about Banco Espirito Santo [BES] have now surfaced ...

    July 30, 2014 - Portuguese Regulator Bans Short-Selling After Banco Espirito Santo Unveils Massive $5 Billion Loss. From: ZeroHedge http://tinyurl.com/q4c...

    After the US equity markets closed, Portugal's troubled Banco Espirito Santo unveiled a EUR 3.58 Billion loss. This loss is 15 times larger than the loss the bank suffered a year earlier. Data through the end of June shows notable deposit flight with a 73.1% plunge in banking income, 24% decrease in commercial banking income, a -41% decrease in total equity (i.e. liquidity), and an increase in net operating costs of 6%. After this was revealed, Portugal's securities regulator enforced a short-selling ban on BES.
    ===

    More "unexpected facts" ...

    (Reuters) - Laws may have been broken at Portugal's Banco Espirito Santo.

    The bank's new management, appointed on July 14, provided fresh details of irregularities in the way the bank dealt with family companies in the recent past. The revelations included the fact that 120 million euros were loaned to a family company in June without passing through the bank's related party lending controls that are in place to approve such transactions.

    The bank also said it had to take 856 million euros of provisions after it discovered two letters issued by the bank in favor of creditors' of a family holding company, ESI, which were not registered in the bank's public accounting records at the end of June. http://tinyurl.com/onz...
    ===

    Not registered in the banks accounting records (!!). Well now, good luck recovering with that kind of unexpected fact. These unexpected facts have so far pushed BES below the regulatory minimum capital requirement. So they have to raise capital to keep operating. Raising new capital is likely going to be difficult, because the bank’s shares have lost 70 percent of their value since the big capital raise in June.

    In the meantime:

    Reuters: BES seeks capital as key staff suspended after massive losses

    The Bank of Portugal announced that BES's top risk management, compliance, supervision and audit officials had been suspended over suspected "harmful management" that may have contributed to the bank's massive losses. The regulator also barred ESFG, the holding company of the bank's founding family, from exercising any voting rights from its 20 percent stake in the bank. http://tinyurl.com/l7d...
    ===

    The fact that BES's top risk management, compliance, supervision and audit officials had been suspended and it's known that liabilities have not been recorded in the banks books means that the true financial status of BES is an unknown, and will not be known until the books have been forensically examined.

    This is going to take some time, but the bank needs capital now. If any kind of "bail-in" is under consideration, they are going to have to limit withdrawals immediately. If they do introduce capital controls, I wonder about contagion. If they don't introduce capital controls, probably no bail-in, and that means someone else is going to be on the hook here....
    Jul 31 06:37 AM | 3 Likes Like |Link to Comment
  • REE/Strategic Minerals Concentrator, March 18, 2014 [View instapost]
    Thanks tons HT for posting that WSJ link this morning. :)
    Jul 31 12:12 AM | 2 Likes Like |Link to Comment
  • Swine Flu, MERS, Ebola And Medical News Concentrator June 7, 2014 To August 16, 2014 [View instapost]
    Thanks Doc!
    Jul 30 11:56 AM | 2 Likes Like |Link to Comment
  • REE/Strategic Minerals Concentrator, March 18, 2014 [View instapost]
    The only reason I ended up with a net gain was because I doubled down when the stock was around .11. I figured they were going to hit their design spec and was licking my chops. They did not, but I just lucked out on it.
    Jul 30 11:46 AM | 2 Likes Like |Link to Comment
  • Swine Flu, MERS, Ebola And Medical News Concentrator June 7, 2014 To August 16, 2014 [View instapost]
    Thanks Doc… They have a quarterly report coming on Aug 1, and there is talk they will miss.. so it might still have some room to sink… Does the new formulation have any advanced dosage control mechanisms like a slow release or is it just a combo of multiple generics?
    Jul 30 11:04 AM | 2 Likes Like |Link to Comment
  • Swine Flu, MERS, Ebola And Medical News Concentrator June 7, 2014 To August 16, 2014 [View instapost]
    Are you thinking of a $6.5 upside in the immediate future Doc?
    Jul 30 10:31 AM | 2 Likes Like |Link to Comment
  • REE/Strategic Minerals Concentrator, March 18, 2014 [View instapost]
    I closed my (OTCQX:LYSDY) position this morning at a profit.
    I am taking a wait and see attitude. The stock has too many balls in the air for me at this time.
    Jul 30 10:27 AM | 4 Likes Like |Link to Comment
  • Stability Of The European Union June 2, 2014 To ??? [View instapost]
    Banco Espirito Santo Plunges: Shareholder Meeting Cancelled Due To "Unexpected Facts"

    Despite DE Shaw and Goldman Sachs recommending investors buy the shares. [LMAO]

    Despite Bank of Portugal reassurance last night that "BES is able to raise capital" ... the stock is plunging this morning on news of "unexpected facts"
    http://tinyurl.com/m3m...

    You have to love that phrase "Unexpected Facts".

    At first, you kind of gloss over it, but than it starts gnawing at your consciousness as you get that uh–oh feeling in your gut and the hairs on the back of you neck start to uncontrollably quiver. Not only is the news unexpected, but it’s factual, and significant enough to cause the cancellation of a pre-arranged shareholders meeting... the shareholders response is to start bailing - the shorts are smiling, the sheep are bleeding... all is right in the bankers world as they extract their pounds of flesh http://tinyurl.com/qbp...
    Jul 29 10:59 AM | 6 Likes Like |Link to Comment
  • REE/Strategic Minerals Concentrator, March 18, 2014 [View instapost]
    I can't believe it… I am in the green on LYSDY!
    Jul 29 09:55 AM | 7 Likes Like |Link to Comment
  • Stability Of The European Union June 2, 2014 To ??? [View instapost]
    This is worth a read...
    The Italian Government Owes Over $100 Billion To Private Suppliers July 27, 2014 - ZeroHedge http://tinyurl.com/lv9...
    Jul 27 11:45 PM | 3 Likes Like |Link to Comment
  • Quickchat#272, June 16, 2014 [View instapost]
    It also executed a death cross in early July.
    Jul 21 08:27 AM | 5 Likes Like |Link to Comment
  • Quickchat#272, June 16, 2014 [View instapost]
    Hell, the corruption is built into it at inception. The political backing is different, but I suspect most of the world of high finance is inherently corrupt.
    Jul 16 03:12 PM | 6 Likes Like |Link to Comment
  • Swine Flu, MERS, Ebola And Medical News Concentrator June 7, 2014 To August 16, 2014 [View instapost]
    LOL… I almost swallowed my tongue at 2.27.
    Jul 15 02:05 PM | 5 Likes Like |Link to Comment
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