European Banks Crash For 4th Straight Week

[hv_]

Austria Just Announced A 54% Haircut Of Senior Creditors In First "Bail In" Under New European Rules

Just over a year ago, a black swan landed in the middle of Europe, when in what was then dubbed a "Spectacular Development" In Austria, the "bad bank" of failed Hypo Alpe Adria - the Heta Asset Resolution AG - itself went from good to bad, with its creditors forced into an involuntary "bail-in" following the "discovery" of a $8.5 billion capital hole in its balance sheet primarily related to ongoing deterioration in central and eastern European economies.

Austria had previously nationalized Heta’s predecessor Hypo Alpe-Adria-Bank International six years ago after it nearly collapsed under the bad loans it ran up when it grew rapidly in the former Yugoslavia. Having burnt through €5.5 euros of taxpayers’ money to prop up Hypo Alpe, Finance Minister Hans Joerg Schelling ended support in March 2015, triggering the FMA’s takeover.

This was the first official proposed "Bail-In" of creditors, one that took place before similar ad hoc balance sheet restructuring would take place in Greece and Portugal in the coming months. Or rather, it wasn't a fully executed "Bail-In" for the reason that creditors fought it tooth and nail.

And then today, following a decision by the Austrian Banking Regulator, the Finanzmarktaufsicht or Financial Market Authority, Austria officially became the first European country to use a new law under the framework imposed by Bank the European Recovery and Resolution Directive to share losses of a failed bank with senior creditors as it slashed the value of debt owed by Heta Asset Resolution AG......

http://www.zerohedge.com/news/2016-04-10/austria-just-announced-54-haircut-senior-creditors-first-bail-under-new-european-rul

Check that, the IMF pensions are about to lose 150 mio Euro with that haircut!

http://www.reuters.com/article/austria-heta-asset-world-bank-idUSL5N17I1U9

[HeroCat]

European banks are quite strong and rich. Germany and France are very rich countries, they fund a lot of whole EU funds. 

[Denker]

Austria Just Announced A 54% Haircut Of Senior Creditors In First "Bail In" Under New European Rules

Just over a year ago, a black swan landed in the middle of Europe, when in what was then dubbed a "Spectacular Development" In Austria, the "bad bank" of failed Hypo Alpe Adria - the Heta Asset Resolution AG - itself went from good to bad, with its creditors forced into an involuntary "bail-in" following the "discovery" of a $8.5 billion capital hole in its balance sheet primarily related to ongoing deterioration in central and eastern European economies.

Austria had previously nationalized Heta’s predecessor Hypo Alpe-Adria-Bank International six years ago after it nearly collapsed under the bad loans it ran up when it grew rapidly in the former Yugoslavia. Having burnt through €5.5 euros of taxpayers’ money to prop up Hypo Alpe, Finance Minister Hans Joerg Schelling ended support in March 2015, triggering the FMA’s takeover.

This was the first official proposed "Bail-In" of creditors, one that took place before similar ad hoc balance sheet restructuring would take place in Greece and Portugal in the coming months. Or rather, it wasn't a fully executed "Bail-In" for the reason that creditors fought it tooth and nail.

And then today, following a decision by the Austrian Banking Regulator, the Finanzmarktaufsicht or Financial Market Authority, Austria officially became the first European country to use a new law under the framework imposed by Bank the European Recovery and Resolution Directive to share losses of a failed bank with senior creditors as it slashed the value of debt owed by Heta Asset Resolution AG......

http://www.zerohedge.com/news/2016-04-10/austria-just-announced-54-haircut-senior-creditors-first-bail-under-new-european-rul

Check that, the IMF pensions are about to lose 150 mio Euro with that haircut!

http://www.reuters.com/article/austria-heta-asset-world-bank-idUSL5N17I1U9

I guess this is just he beginning.
A lot more of news like that to come the next years.

[stan.distortion]

European banks are quite strong and rich. Germany and France are very rich countries, they fund a lot of whole EU funds.  

That's the trouble, the highly advanced and productive European countries are being dragged down by the others that simply aren't ready for the same level of advancement. Here in Ireland a huge amount of European loans where pumped into the country in an attempt to bring it up to a similar level as the more advanced parts of Europe. It was a big leap forward but it would need to be an order of magnitude bigger at least to actually bring it to the same level, the extra administrative costs alone are unsustainable and it would need a change of mentality that could only happen over generations.

Being taken by surprise by that is inconceivable, lenders on that size are in the business of calculating risks and that one is way off the scale no matter what way you look at it so the whole point of those loans wasn't modernisation, it was debt entrapment, just the same as Greece, Portugal, every other European state that simply couldn't advance that quickly. Something similar was tried in Iceland and a back to back comparison of how the situation played out makes that even more clear, Iceland suddenly found it's self expected to pay back a huge amount of money it never asked for and imprisoned those responsible, it was either that or they'd have been lynched and has dug its self out from the trap. Ireland on the other hand accepted it and is very unlikely to ever escape from it (there's another round of the same in the works right now) and Greece was forced to sign an inescapable agreement to the same ends. Practically the whole world is in the same situation to some degree, debt they never asked for and can't escape from.

[tyz]

This is true. The stock rates of banks are usually indicators of the economic condition. They show preliminary what happens to the economy in a couple of months.

There are too many banks in Europe (in almost all countries) which have a not working and bad business model and which are nonviable.

Banks are just a reflection of the overall economy.
If the outlook for the overall economy is bad, banks can't be expected to do much better. 

[Pab]

You know Panama papers,now there are news who was hiding his money there.There is no news by who that
firms are creared,So only Deutche Bank has about 4000 firms like that all over the world
other big banks german,french,dutch etc have his own,thay are all related,You will nver know how much money is there.It is like parallel economy.Now Deutche Bank has to agree to coparate in inestigation who were frauding gold trading.To avoid next penalties thay will revail who was manipulating market together with them
But thay are to big to fail,great excuse

[alyssa85]

Europe got a little crisis going on. The problem is Brexit. If it proceeds. EU banks need to sell their Uk stocks/holding by law.
Which makes the whole european market unstable to say the least.

What law is this? I've never heard of it. I don't think EU banks hold stocks at all. They might hold bonds, but they rarely hold stocks because they are so volatile.

[OROBTC]

...

Europe and European have a LOT of problems.  Muslim invaders that they do nothing about is just one, albeit a big one.

The European banks apparently have at least as much, or more, debt on their books as the American ones do.  And like stan.distortion above mentioned, Europe has a lot of weaker banks and countries that they have to tend to.  Italian banks are now in the spotlight.

Deutsche Bank is the Gran Enchilada of ticking time bombs.  They were just busted by admitting manipulating silver & gold prices for many years.  Deutsche has HUGE derivatives exposure, more than any other in the world IIRC.


Tick tock tick tock

[jaysabi]

US Industrial data are showing that USA is entering in recession,no doubt about,data are the same ike in the
begiing of any previous recession
So no more rates increase and what,lowering rates,negatives rates,new QE
Dead end

No no, everything's fine, nothing to see here at all. In fact, I'd suggest giving our bankers a bonus for keeping everything so stable and secure. That was pretty much the message in 2007 but I doubt taxpayers will be so easily fooled into footing the bill this time around.

You make it sound like the taxpayers have a say in the matter. There was no referendum in 2008. Things were just done without much consideration of how politically popular the actions were.

[stan.distortion]

US Industrial data are showing that USA is entering in recession,no doubt about,data are the same ike in the
begiing of any previous recession
So no more rates increase and what,lowering rates,negatives rates,new QE
Dead end

No no, everything's fine, nothing to see here at all. In fact, I'd suggest giving our bankers a bonus for keeping everything so stable and secure. That was pretty much the message in 2007 but I doubt taxpayers will be so easily fooled into footing the bill this time around.

You make it sound like the taxpayers have a say in the matter. There was no referendum in 2008. Things were just done without much consideration of how politically popular the actions were.

I'm sure it was considered, probably much in the same way as the popularity of the Iraq war was considered, ie. "how much can we get away with?".
Here's how one of Irelands biggest banks added up the numbers:
http://www.zerohedge.com/news/2013-06-24/anglo-irish-picked-bailout-number-out-my-arse-force-shared-taxpayer-sacrifice

[expert4knowledge]

So does this show that we have to expect another fall down of euro in the world and specially in front of dollar.

All western economies, they've all printed themselves into a corner. The real worry for me here is the IMF if/when that happens because they're likely to step in as the "great saviour" and get their hands on everything our banks has laid claim to in the process. That would basically leave us with a 2 party politics style global economy, BRICS and the IMF.

But such downfalls and crash should not happen worldwide so early. 1930-2008 and the next one will need more years.