http://www.zerohedge.com/news/bank-spain-formally-nationalizes-bankia-adds-there-no-cause-concern
Submitted by Tyler Durden on 05/09/2012 15:43 -0400
http://www.zerohedge.com/news/nigel-farage-eu-titanic-has-now-hit-iceberg
Submitted by Tyler Durden on 05/09/2012 13:21 -0400
Bank Of Spain Formally Nationalizes Bankia, Says Insolvent Bank Is "Solvent", Adds There Is No Cause For Concern
The only thing funnier than a nationalization statement spun as positive, or favorable for taxpayers, is one that has been Google translated, in this case from Spanish, courtesy of Bank of Spain, which has just formally bailed out Bankia, leaving the best for last: "In any case, BFA-Bankia is a solvent entity that continues to function quite normally and customers and depositors should have no concern."Move along. Nothing to see here. Nobody should be concerned.
From de Bank of Spain:
Statement on BFA-Bankia
The Board of Finance and Savings Bank (BFA) announced today the Bank of Spain its decision not to buy in the terms and conditions agreed to the securities issued in the amount of € 4.465m who signed the FROB (Bank Restructuring Fund). BFA has concluded that the most desirable to strengthen the soundness of the business project that began with the appointment of Jose Ignacio Goirigolzarri as president is to request the conversion of these titles in stock ordinary. This conversion must be authorized by the Bank of Spain and the other authorities Spanish authorities and community and will be conducted in accordance with the valuation process established in the indenture securities.
The Bank of Spain has worked hard in recent months with the group address BFA-Bankia to specify the measures to ensure compliance with the provisions of the RD-l 2/2012 for the sanitation Spanish financial system. BFA-Bankia late March presented a restructuring plan and restructuring that included measures that would comply with the RD-l, and standardize its financial position.
After analyzing this reorganization plan, the Bank of Spain also ordered the entity measures complementary to streamline and strengthen management structures and management, increasing professionalization and a divestment program. These additional actions should serve to enhance the soundness of the institution and restore market confidence. The events of the past weeks and the growing uncertainty about the future of the company has made it advisable to go further and raise the providing resources to accelerate and increase public sanitation.
The changes in the presidency of BFA-Bankia is precisely oriented in the direction shown in professional management and allow the group to boost its restructuring program. The new address of the entity must submit in the shortest possible plan of reorganization strengthened that places BFA-Bankia able to cope with a full guarantee its future.
In any case, BFA-Bankia is a solvent entity that continues to function quite normally and customers and depositors should have no concern.
and....
http://www.guardian.co.uk/business/2012/may/09/eurozone-crisis-greek-euro-exit-fears
• Greece is likely to hold new elections after a second try at forming a government failed. Alexis Tsipras, head of the Radical Left coalition Syriza, said the party's best efforts at forming a governing bloc had fallen short.
• European wariness about moving forward with the Greek bailout is resurgent. €1bn will be held back from a bailout tranche scheduled for Thursday. The EFSF announced the money would be disbursed "depending on the financing needs of Greece." As if those were in doubt.
• The EU is due on Friday to announce its economic forecasts for the 27 EU countries. It's the same day that news on Spanish bank refinancings is expected. The banks will be looking for an "extra" €35bn, according to multiple sources.
• The euro slumped to $1.2945 on the sharpened impression that the currency zone is in the process of falling apart. US markets largely shrugged off the news overseas.
• The euro slumped to $1.2945 on the sharpened impression that the currency zone is in the process of falling apart. US markets largely shrugged off the news overseas.
Nick Malkoutzis of Inside Greece says the rejection of the mainstream parties does not necessarily mean arejection of a bailout arrangement that could keep Greece in the eurozone:
Representatives of the Coalition of the Radical Left (SYRIZA) and the Independent Greeks, as well as others, have suggested that Sunday's outcome is proof that 68 percent of voters reject the terms of the EU-IMF bailout. In fact, so emboldened by his party's remarkable surge to 16.78 percent, SYRIZA leader Alexis Tsipras is poised to write to EU officials to declare the loan deal null and void because of the way people voted on Sunday. This is presumptuous on behalf of the leftist leader.It's true that PASOK and New Democracy, the two that signed the latest loan agreement, only gathered a combined record low of 32 percent but that doesn't mean that every other vote was cast as a flat rejection of the bailout mechanism.Democratic Left, which won 6.11 percent of the vote, has asked for Greece to disengage from the memorandum but has not asked for an immediate rejection. After all, remaining in the eurozone is one of the party's red lines. That's why its leader, Fotis Kouvelis, has given only qualified support to Tsipras, saying he would back a SYRIZA administration only if it's a majority government.Breaking News: Greece will be denied a full transfer of bailout funds scheduled to arrive Thursday. My colleague Ian Traynor reports from Brussels:
The top dogs at the eurozone's current temporary bailout fund, the EFSF, have confirmed they are releasing money to Greece tomorrow after a day of dispute, but that they are also sending a signal to the recalcitrant by withholding some 20%, or a billion euros, of what should have been delivered.An EFSF statement said: "The Board has confirmed the release of the outstanding amount of €5.2 bn from the first installment of €39.4 bn by the end of June. An amount of €4.2 bn will be disbursed on 10 May. The remaining funds of €1.0 bn are not needed before June and will be disbursed depending on the financing needs of Greece. As with previous disbursements to Greece, the EFSF will transfer the €4.2 bn into a segregated account which will be used for debt service payments."The "debt service payments" means that most of the money will be returned to the eurozone. The "depending on the financing needs" means "behave or else."
and......
Nigel Farage: "The EU Titanic Has Now Hit The Iceberg"
In one of his most passionate speeches (which says a lot), UKIP's Nigel Farage, on the May 9th celebration of the Euro, tells his European Parliament colleagues of his grave concern at the recent elections - which are very reminiscent of the elections in Germany in 1932. He warns that Europe faces the very real prospect of mass civil unrest and even revolution as the Euro project itself could even be the cause of (in it perfect irony as the initial solution to) a rebirth of national socialism in Europe. Farage pulls no punches but in three minutes provides a clear picture of just how concerned anyone who is not merely a head-in-the-sand status-quo muddle-through'er should be with regards Europe: "It is a European union of economic failure, of mass unemployment, and of low growth"
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