Sunday, May 27, 2012

Financial leverage utilized against Greece Newedge leaving Greece Stock Market / Euler Hermes reviewing Greek export coverage / Troika delaying next tranche of Greece aid until july after EFSF cut ability off May payment are several recent post May election moves . examples. Tsipras tees up Lagard comments , ND and Pasok collaboration with the Troika and past corruption. Greece responds on Facebook to ole Alligator hide face Lagarde..... As Greece apparently runs out of money in mid to late June ( does the numbers cited by former PM Papademos reflect miserable tax collections as said memo was from May 11th and probably is outdated by events subsequent to its submission to President Papoulias ) .... items of interest from sunday papers - ponder what is the point of Samaras and Venizelos talking up their so called renegotiation stances when the Troika nas clearly set the bailout memoranda will not be renegotiated ?

http://www.zerohedge.com/news/newedge-leaves-greek-stock-market-will-only-execute-sell-orders


Newedge Leaves Greek Stock Market, Will Only Execute Sell Orders

Tyler Durden's picture
Submitted by Tyler Durden on 05/27/2012 17:38 -0400



Either the game of chicken in Europe has hit just surpassed ludicrous speed, or French banks SocGen and Credit Agricole, both of which have some of the worst CT1/TA ratios in the known universe, and which are the JV participants of Newedge, have decided to formally pull the plug on Greece. As the FT reported moments ago, Newedge "has told clients that it will process only sell orders, and stop extending margin loans for existing positions in Greek securities, according to a memo obtained by the Financial Times."
A list of securities subject to the new restrictions include foreign-listed shares and American depositary receipts for Greek companies including Alpha Bank, Coca-Cola Hellenic Bottling and Paragon Shipping, a New York-listed shipowner that is headquartered in Greece.

“It is part of our ordinary risk practices to minimise our potential exposures proactively when we are concerned about potential issues,” the broker said.

Newedge – a joint venture of French banks Société Générale and Crédit Agricole – has Europe’s seventh largest hedge fund prime brokerage business, with more than $31bn in client assets, according to industry publication EuroHedge.

Its move is the latest evidence that the financial sector is preparing for a eurozone break-up, even as European officials debate the terms of the Greek bailout. A person familiar with the matter said Newedge wanted to avoid unpredictable risks in the event that Athens returned to the drachma as the national currency.


Add this to news over the weekend that Euler Hermes is "reviewing Greek export coverage." To wit - "In light of the recent developments, Euler Hermes will most probably have to switch to a more prudent approach, also in the interest of its customers,” spokeswoman Bettina Sattler said in an e-mailed response to questions. “The outcome of the new elections in June remains highly uncertain. Consequently, the situation is further deteriorating. The risk of Greece exiting the Eurozone has been revived." Translation: Greek foreign trade is about to be halted dead in its tracks.
And now, as per the Newedge hint, we have a concerted effort to crash the stock market too.
In other words, in addition to a bank run (because as has been widely reported already, Greek banks have seen billions in cash withdrawn in the past 3 weeks), in addition to trade paralysis, we are about to see a full blown stock market collapse of what little is left in the Athens Stock Exchange as everyone rushes to sell any securities at firesale prices. Sadly, this is nothing but the final punishment for a Greek population which held its first quasi-referendum on being a Eurobanker tolling operation (where European "bailout" funds go simply to fund European bank capital shortfalls, and the ECB of course) and said no.
Simply said - what we are witnessing is the concerted effort of Greece's former "allies" do everything in their power to destroy the small nation just so it has a taste of what would happen if it indeed follows the democratic process. And those organizations, such as the IMF, whose job it is to mitigate such a process, are doing the opposite, and merely pouring fuel on the fire, as LaGarde's interview in the Guardian indicated.
Basically, the entire developed world has now gone all in that Greece can be scared out of doing what its population has indicated ever since the first parliamentary election, has every intention of doing.
The only question is whether, as we asked even before the election, the "Greek population has already lost everything and is now free to do anything." Because if it has, and following 2 years of wealth transfer from the Greeks to the banks the answer is almost certainly a resounding yes, the outcome for all those attempting to herd the Greeks, will be far more disastrous than any of their fearmongering attempts of a Greek social collapse ever could be.









http://www.athensnews.gr/portal/8/55826


Tsipras aims for Pasok, ND and Simitis
27 May 2012
The Syriza head has accused Pasok and ND of trying to force Greeks into submission. (file photo)
The Syriza head has accused Pasok and ND of trying to force Greeks into submission. (file photo)

In a stinging attack on the two mainstream parties New Democracy and Pasok, but also former Pasok premier Costas Simitis, the head of the Coalition of the Radical Left (Syriza) Alexis Tsipras on Sunday stressed that the "people are resisting, organising, fighting back and eventually will prevail".
In his statement, Tsipras accused the "domestic political forces of the bailouts" of outdoing even Greece's creditors in their attempts to threaten, blackmail and even lie to the electorate over the last few days, raising the spectre of a euro exit for the country, in their efforts to terrorise people into complete submission to the dictates of the bailout programmes. He noted that, at the same time, the head of the Institute of International Finance Charles Dallara, economists and EU officials were emphasising the need to stop talk on a possible Greek exit because of its dire repercussions for the Eurozone and the global economy.
Replying to harsh statements made by IMF managing director Christine Lagarde to the Guardian concerning the sympathy due to crisis-hit people in Greece that were unable to get access to basic services, Tsipras noted that the last thing that Greece wanted from Lagarde was her sympathy. He stressed that ordinary working Greeks paid their taxes and that these taxes were extremely heavy, while urging Lagarde to ask the mainstream Pasok and ND parties why they had failed to ensure that taxes were paid by big business but had only hounded ordinary salaried employees for the last two years.
Tsipras accused ND of "returning to the past" and said that ND leader Antonis Samaras was facing them "arm-in-arm with graft, banking interests and the forces of inertia, kleptocracy, selfishness and submission". He stressed that the political parties, the officials of EU institutions, foreign financial speculators, employers and the media were united in trying to make Greek people submit to the bailouts and retain the politicians responsible for the country's moral, political and economic bankruptcy.
Referring to an article by Simitis appearing in the Sunday 'Vima', Tsipras said that Simitis had omitted even the slightest self-criticism in his article and had failed to mention the kickbacks for both the Olympic Games and military spending, nor the infrastructure projects that cost 10 times more than in other European countries or the scandal with Goldman Sachs. (AMNA)


and....

http://www.telegraph.co.uk/finance/financialcrisis/9293550/Greek-Facebook-users-start-war-against-Lagarde.html


The French managing director of the International Monetary Fund received more than 10,000 messages, many of them obscene, on her page on the online social network - where her postings typically draw a couple of hundred comments.
By late Sunday afternoon a separate Facebook page had sprung up titled "Greeks are against Lagarde".
Its creators described it as "the page through which to show displeasure as a nation towards Lagarde!", with a picture of the IMF chief.
Greeks accused Lagarde on her page of belittling their suffering in an economic crisis that has seen salaries and pensions cut, in a recession now in its fifth year.
Ms Lagarde told The Guardian in an interview published this weekend that Greeks must "help themselves" by all paying taxes, saying she was more concerned about Africans in poverty than Greeks in the economic crisis.



http://www.telegraph.co.uk/finance/financialcrisis/9293101/Greece-will-run-out-of-money-by-end-of-June-warns-former-PM-Lucas-Papademos.html


"From late June onwards, the ability of the government to fund its obligations fully depends on the approval of the subsequent installments of loans from the EFSF and the IMF," To Vima newspaper quoted Papademos as saying in a leaked memo.
"The available funds in the Greek government will be reduced gradually from about €3.8bn [£3bn} on May 11 to about €700m on June 18 and from June 20 will enter negative territory at the level of around €1bn."
Centre-left To Vima said Papademos made the warning in a memo to President Carolos Papoulias dated May 11 that was then circulated to party leaders as they tried to form a coalition after an inconclusive May 6 vote.
Greece in 2010 committed itself to a reform programme in return for hundreds of billions of euros in bailout funds from the the European Union bailout fund EFSF and the International Monetary Fund.
On May 6 voters weary with salary cuts and other austerity measures handed second place to radical left-wing party Syriza, which has threatened to renege on the bailout accords.
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