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Originally posted by Colon™
The problem is that Fortis may be too big for Belgium to rescue.
The problem is that Fortis may be too big for Belgium to rescue.
"Too big to save."
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Lol. Instead of "Too big to fail",
"Too big to save."VANGUARD -
Colon: Do we know why the gov'ts only took a 49% share?I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891Comment
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Apparently they must restrict themselves to a minority stake because the investments otherwise wouldn't be counted to tier one capital. (Don't know why that is)DISCLAIMER: the author of the above written texts does not warrant or assume any legal liability or responsibility for any offence and insult; disrespect, arrogance and related forms of demeaning behaviour; discrimination based on race, gender, age, income class, body mass, living area, political voting-record, football fan-ship and musical preference; insensitivity towards material, emotional or spiritual distress; and attempted emotional or financial black-mailing, skirt-chasing or death-threats perceived by the reader of the said written texts.Comment
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I guess it's just a different approach than what the US is taking. If the government is going to provide money, it tends to be a little more destructive against the equity and bondholders.I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891Comment
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Quite a hangover brewing in the markets. FXI is down 7% before the opening. The Dollar is rallying big-time. Most major Euro indices in major sell-off territory -- Belgium's market is almost in crash mode.
In addition to the action on Fortis and B&B, Hypo Real Estate is bailed out. Looks to be a lot of turmoil in Europe.Last edited by DanS; September 29, 2008, 09:08.I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891Comment
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Wachovia is taken over by Citigroup. Details are sketchy at this time, especially as it relates to the hit on the FDIC insurance fund.
These sure are extraordinary times. Banks with $1 trillion in assets are being thrown around like nothing.Last edited by DanS; September 29, 2008, 09:11.I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891Comment
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Here are terms of the Wachovia sale to Citigroup...
Citigroup will pay the Charlotte-based Wachovia about $2.16 billion, or $1 per share, for its banking operations. Wachovia will retain its wealth management and brokerage operations.Wachovia has been saddled by mortgage-related losses. Under the terms of the deal, Citigroup will absorb up to $42 billion of losses on a $312 billion pool of loans. The FDIC will be responsible for any losses beyond that, but was given $12 billion in Citigroup preferred stock and warrants in return for that guaranty.I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891Comment
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Fortis even opened 12% up (though it closed 17% down). Safeguarding deposit-holders (not even just the small ones) was the primary objective. I'm very unhappy they announced a blanket guarantee on all deposits last weekend.Originally posted by DanS
I guess it's just a different approach than what the US is taking. If the government is going to provide money, it tends to be a little more destructive against the equity and bondholders.
Dexia is set to be next in line. Belgium's stock market used to be one of the most financials-dominated and now we're facing the prospect there won't be a single major independent bank left.DISCLAIMER: the author of the above written texts does not warrant or assume any legal liability or responsibility for any offence and insult; disrespect, arrogance and related forms of demeaning behaviour; discrimination based on race, gender, age, income class, body mass, living area, political voting-record, football fan-ship and musical preference; insensitivity towards material, emotional or spiritual distress; and attempted emotional or financial black-mailing, skirt-chasing or death-threats perceived by the reader of the said written texts.Comment
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Teh markets are fundamentally sound, stop worrying."Comment
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Would you consider the Belgium market to have crashed today?I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891Comment
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I thought a month ago that Wachovia and Wells Fargo were one of the safest bets in US... which Citi being very exposed, but huge (so hard to topple), but now we have Citi acquiring Wachovia while absorbing 42bn losses WTF?!? do they have unlimited pool of money available???
In any case it seems that Golden West Financial Corp killed Wachovia, but Citigroup who have an heavily overleveraged hand in everything are still buying, weren't they just recently selling off their international arms to raise cash???
to add: http://ap.google.com/article/ALeqM5j...MqW6QD93GE59G0
who will be buying this?The deal greatly expands Citigroup's retail outlets and secures its place among the U.S. banking industry's Big Three, along with Bank of America Corp. and J.P. Morgan Chase & Co. But it comes at a cost — Citigroup said Monday it will seek to sell $10 billion in common stock and slashed its quarterly dividend in half to 16 cents to shore up its capital position.
and on 700bn rescue plan
This detail could allow Citigroup to sell toxic mortgages and other assets it gained from Wachovia for a higher price than the bank actually paid for them.
What prevented Wachovia to be shored up and wait for the imminent 700bn deal?
in other news an interesting writeup on what is just about to explode
Buffets "financial weapon of mass destruction"...Last edited by OneFootInTheGrave; September 29, 2008, 11:51.Socrates: "Good is That at which all things aim, If one knows what the good is, one will always do what is good." Brian: "Romanes eunt domus"
GW 2013: "and juistin bieber is gay with me and we have 10 kids we live in u.s.a in the white house with obama"Comment
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Jebus. The European stock markets jumped the rails today. Amsterdam's down almost 9%.I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891Comment
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Fortis would hit Amserdam and Brussels most... this is a catastrophe in relative size virtually impossible in a larger economy...Socrates: "Good is That at which all things aim, If one knows what the good is, one will always do what is good." Brian: "Romanes eunt domus"
GW 2013: "and juistin bieber is gay with me and we have 10 kids we live in u.s.a in the white house with obama"Comment
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The Belgian authorithies are now discussing a bailout of Dexia (world's biggest lender to local governments).DISCLAIMER: the author of the above written texts does not warrant or assume any legal liability or responsibility for any offence and insult; disrespect, arrogance and related forms of demeaning behaviour; discrimination based on race, gender, age, income class, body mass, living area, political voting-record, football fan-ship and musical preference; insensitivity towards material, emotional or spiritual distress; and attempted emotional or financial black-mailing, skirt-chasing or death-threats perceived by the reader of the said written texts.Comment
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Shares in several banks are plummeting. Sovereign down 53%. National City down 47%. First Horizon down 36%. Fifth-Third down 36%.
I guess these are the banks on which Wells Fargo and US Bancorp will feast.I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891Comment
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