Seeking Alpha

Banco Espirito Santo tries to reassure market

  • Banco Espirito Santo believes its capital buffers will protect it from any losses incurred by exposure to its parent group. The statement was announced to quell concerns from investors and the market after a rocky last few days, which lead to the trading suspension of both Banco Espirito Santo and Espirito Santo Financial Group (ESFHF).
  • Issues came to a head this week when debt repayments to clients on commercial paper issued by parent company Espirito Santo International were postponed. Concerns are still being expressed over the bank's financial stability and complex structure of its parent company.
  • Banco Espirito Santo's market value has almost halved since May.
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Comments (6)
  • capitolp
    , contributor
    Comments (685) | Send Message
     
    So, what do you expect them to say, Get your money out quick before we implode.
    11 Jul 2014, 09:06 AM Reply Like
  • New Low Observer
    , contributor
    Comments (2149) | Send Message
     
    Agreed Capitolp.

     

    In addition, reassurances of this kind are usually counter to the true condition (i.e. Enron, HealthSouth, Thailand before default, Bear Stearns, Wachovia, WaMu, Lehman ad infintum).
    12 Jul 2014, 10:25 AM Reply Like
  • permanent
    , contributor
    Comments (210) | Send Message
     
    This was a great reason to start a market correction before the S&P will jump over the 2000 mark.
    Keep in mind:
    http://seekingalpha.co...
    So if central Banks are buying stocks there is no reason for retail Investors to sell stocks.
    11 Jul 2014, 10:22 AM Reply Like
  • june1234
    , contributor
    Comments (3125) | Send Message
     
    ECB will need to step up again, they have to
    11 Jul 2014, 10:27 AM Reply Like
  • caupachow
    , contributor
    Comments (460) | Send Message
     
    Turn out the lights.
    12 Jul 2014, 09:10 AM Reply Like
  • june1234
    , contributor
    Comments (3125) | Send Message
     
    Chart of the FEZ ETF which tracks european markets tells the story
    12 Jul 2014, 11:00 AM Reply Like
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