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European banks tumble on Portugal trouble

  • When the going gets tough, the tough suspend trading. Portugal has halted trade in Banco Espirito Santo with the stock off 17.2% on the session and 54% over the last month. At issue are financial troubles for the bank's privately-owned holding company, Espirito Santo International. Its accounts are currently under review by an external auditor who has identified irregularities and concluded the company "is in serious financial condition."
  • Santander (SAN -5.8%), UBS (UBS -1.8%), Deutsche Bank (DB -3.1%), Bank of Ireland (IRE -5.6%), Credit Suisse (CS -2.8%), ING (ING -3.2%), BBVA (BBVA -3.1%). U.K. banks: Barclays (BCS -3.8%), RBS (RBS -1.9%), HSBC (HSBC -1.9%), Lloyds (LYG -2%).
  • European financial sector ETF: EUFN -2.4%.
Comments (7)
  • thodoris91
    , contributor
    Comments (52) | Send Message
     
    fundamentals always win in the end
    10 Jul, 10:22 AM Reply Like
  • James Bjorkman
    , contributor
    Comments (568) | Send Message
     
    The one word you never want to hear about a stock you own: "irregularities." Condolences to the shareholders.

     

    When this shakes out, will be a buying op in some of the top-flight names getting hit.
    10 Jul, 10:32 AM Reply Like
  • joey999
    , contributor
    Comments (92) | Send Message
     
    The problems are in a company that owns 25% of the bank. Normally, this would only raise the possibility of a fire sale of their shares in the bank, which would have little effect on day to day operations and indeed might be a buying opportunity.
    However in this case senior bank management are on the board of the holding company, the company in the serious condition with irregularities. Ouch.
    10 Jul, 03:11 PM Reply Like
  • Erocha
    , contributor
    Comments (2) | Send Message
     
    The bank financed the holding companies, at the moment it is uncertain to what extent. It has also been rumoured that the books in the top holding have been cooked.
    10 Jul, 06:10 PM Reply Like
  • kamkamkam
    , contributor
    Comments (3) | Send Message
     
    always have problem is the way of living now.
    11 Jul, 02:36 AM Reply Like
  • Michael Bryant
    , contributor
    Comments (5350) | Send Message
     
    Buying opportunity? How about (SAN)?
    12 Jul, 11:14 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (5350) | Send Message
     
    http://yhoo.it/1r7j3rA
    Look like a good time to buy ESPIRITO SANTO R (OTCPK:BKESY). Blood on the streets.
    http://yhoo.it/1r7j3rC

     

    "His reassurances followed a statement by BES saying potential losses on loans to the Espírito Santo group would not put its solvency at risk."
    http://on.ft.com/1r7j5Q9
    12 Jul, 11:23 PM Reply Like
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