http://hat4uk.wordpress.com/2012/08/15/spain-the-good-news-more-haircuts/
Another satisfied c-c-c-caja c-c-c-customer
http://www.telegraph.co.uk/finance/debt-crisis-live/9475598/Debt-crisis-live.html
There are people who don't have enough to eat. In the 21st century, this is an absolute disgrace.
You can't be Robin Hood and the Sheriff of Nottingham. This man is just searching for publicity at the cost of everyone else.
In place of inflicting large losses on small savers who purchased savings products linked to preference shares in in the lenders known as cajas, the Spanish government is negotiating a compromise where they will suffer an instant haircut, and then be repaid in full over time by their banks, people familiar with the talks said.
Submitted by Tyler Durden on 08/15/2012 07:05 -0400
SPAIN, THE GOOD NEWS: More haircuts….
THE BAD NEWS….It’s the ordinary Spaniard being scalped
Another satisfied c-c-c-caja c-c-c-customer
The Department of EU Commissioner Joaquín Almunia is obviously peopled by lateral thinkers: ‘Look, Iceland told the lenders to go stuff it and gave all of them a baldy haircut….let’s do that in Spain’. Boldly going where none had gone before, Almunia’s staff ordered a crewcut on investors….small savers of minimal means who purchased savings products linked to preference shares in in the lenders known as cajas, which specialise in the homebuying sector.
Kop this for Gauleiter sensitivity: the order that went out said that these savers losing their shirts “is a logical step if Spain’s banking system is to be saved”.
Startling logic: bankers overlend, con ordinary savers into buying risky stock, then shave them bald to save themselves.
This isn’t some piddling amount: most estimates put the sum between €25bn and €40bn.
Spanish bankers thus hoped that preference share holders would be forced to take an immediate haircut of between 50 and 70% – result!
But the actual result (almost absent from the Western MSM outside Spain) was a storm of protest from the citizenry. So now the Rajoy government is negotiating with Brussels to allow a compromise whereby these savers will suffer a haircut today, and then be ignored when the Cajas go bust be repaid over an as yet unspecified time period by their bank.
The talks with Almunia’s department (and higher officials in Brussels) are said to be “proceeding”. Says The Slog’s Brussels contact:
“I think [Brussels] will cave. They don’t need any more trouble at the moment.”
They may not need any chum, but somehow they attract it like flies to a turd.
and....
http://www.telegraph.co.uk/finance/debt-crisis-live/9475598/Debt-crisis-live.html
10.36 Earlier this month, the head of the Andalusian government vowed to fight the country's strict debt rules in court.
Jose Antonio Grinan said that the limit would mean Andalusia would have to slash its debt by €2.74bn next year, and post budget surpluses, described by Mr Grinan as "impossible during a recession".
The region of Andalusia has one of the highest unemployment rates inSpain, at almost 35pc.
10.30 It looks like Robin Hood has moved to sunnier climes.
One of Spain's regional mayors, who staged a series of supermarket robberies last week, will shortly begin a three week march across the country where he plans to tell mayors to ignore central government demands for budget cuts.
Juan Manuel Sanchez Gordillo, mayor of the town of Marinaleda inAndalusia, told Reuters that food stolen last week went to families hit hardest by Spain's economic crisis. He said:
There are people who don't have enough to eat. In the 21st century, this is an absolute disgrace.
As an elected member of Andalusia's regional parliament, Mr Sanchez Gordillo has immunity from prosecution.
Alfonso Alonso, a government spokesman, said Mr Sanchez Gordillowas flouting the law in search of publicity:
You can't be Robin Hood and the Sheriff of Nottingham. This man is just searching for publicity at the cost of everyone else.
09.05 Following Italian PM Mario Monti's tour of Europe this month, it's Spanish PM Mariano Rajoy turn to go on a charm offensive. He has reportedly lined up a meeting with European Council president Herman Van Rompuy this month in order to soften the terms of any full-scale rescue.
Spanish daily Expansion said that Mr Rajoy has also lined up meetings with German Chancellor Angela Merkel, Finland’s president Sauli Niinistoe and Italian Prime Minister Mario Monti.
Expansion also reported that the government would complete its audit of Spain's financial institutions today. Up to €100bn will be made available to recapitalise Spain's battered banks.
08.50 Spain is trying to broker a deal with Brussels that will protect savers from losing their investments as part of its bank bail-out, according to reports.
The Financial Times said that the government is negotiating a dealwhere savers would immediately lose part of their savings, but then be repaid in full over time. More fom the FT:
In place of inflicting large losses on small savers who purchased savings products linked to preference shares in in the lenders known as cajas, the Spanish government is negotiating a compromise where they will suffer an instant haircut, and then be repaid in full over time by their banks, people familiar with the talks said.
About €30bn of such products were sold to individual savers before the crisis by small Spanish banks, according to estimates by Barclays, while about 60 per cent of subordinated bank debt is held by retail clients, excluding Santander and BBVA.
Numerous legal cases have since been brought by Spanish banks clients who allege they were mis-sold risky products as secure deposits, while Luis de Guindos, finance minister, has previously said it was an error that preference shares were ever sold to retail investors.
and a peek at Germany ...........
http://www.zerohedge.com/news/overnight-summary-and-look-days-events
Overnight Summary And Look At The Day's Events
It's quiet out there, quieter than usual. Perhaps this is becauseMerkel is in Canada today and so hasn't had a chance to crash any dreams of magic money trees yet. The EURUSD however did drop preemptively without any news and touched on 3 day lows moments ago under 1.2280, forcing DraghiFX and his long EURUSD call to pay another margin call. Eventwise, in Europe Spain continues to pretend it does not exist, with its bond yields quietly sliding lower even as the country's economy continues to deteriorate, on expectations that Rajoy will ask for a bailout, when in fact the lower yields go, the more unlikely this event is. Of course, all that needs to happen for the deer in headlight market to snap out of its trance is a reminder of just how broke Spain is before it does need a bailout. In the meantime, Spain is extending unemployment benefits. More importantly, it seems that the Chinese slowdown is about to hit Germany like a brick wall: Hamburg - Europe’s second-largest container harbor - reported its first quarterly decline in container volumes in nine quarter. And now the recession is really coming to Germany.
More key overnights summarized by Bloomberg:
- Spain’s government is considering a request for a sovereign bailout, European Economic and Monetary Affairs Commissioner Olli Rehn signaled in a Bloomberg Television interview yesterday
- Spanish Prime Minister Mariano Rajoy risks irking the European policy makers he needs on his side after he extended unemployment benefits to avoid stoking social unrest
- Hamburg, Europe’s second-largest container harbor, reported its first quarterly decline in container volumes in nine quarters as Europe’s debt crisis reached China, the port’s main trading partner
- U.K. jobless claims unexpectedly fell in July and a wider measure of unemployment dropped to its lowest in a year as the Olympic Games created jobs in London
- German bunds lower, Spanish and Italian 10-yr notes higher. BofAML IG Master spread narrows to new low for year. EUR/USD erases gains, slides to session-low $1.2283; European stocks, U.S. equity-index futures lower
What to look forward to today:
- 7:00 am: MBA Mortgage Applications, Aug. 10 (prior -1.8%)
- 8:30 am: Consumer Price Index M/m, July, est. 0.2% (prior 0.0%)
- 8:30 am: CPI Ex Food & Energy M/m, July, est. 0.2% (prior 0.2%)
- 8:30 am: Consumer Price Index Y/y, July, est. 1.6% (prior 1.7%)
- 8:30 am: CPI Ex Food & Energy Y/y, July, est. 2.2% (prior 2.2%)
- 8:30 am: Consumer Price Index NSA, July, est. 229.495 (prior 229.478)
- 8:30 am: CPI Core Index SA, July (prior 229.916)
- 8:30 am: Empire Manufacturing, Aug., est. 7 (prior 7.39)
- 9:00 am: Total Net TIC Flows, June (prior $101.7b)
- 9:00 am: Net Long-term TIC Flows, June, est. $40.0b, (prior $55b)
- 9:15 am: Industrial Production, July, est. 0.5% (prior 0.4%)
- 9:15 am: Capacity Utilization, July, est. 79.2% (prior 78.9%)
- 9:15 am: Manufacturing (SIC) Production, July, est. 0.5%, (prior 0.7%)
- 10:00 am: NAHB Housing Market Index, Aug., est. 35 (prior 35)
- Central Banks
- 8:00 pm: Fed’s Kocherlakota speaks on the Fed in Minot, North Dakota
- Supply
- 11:00 am: Fed to sell $7b-$8b notes due 9/15/14-4/30/15
and back to Spain....
http://soberlook.com/2012/08/target2-replacing-other-sources-of.html?utm_source=BP_recent
TUESDAY, AUGUST 14, 2012
TARGET2 replacing other sources of funding for Bank of Spain
Kostas Kalevras posted his update for Bank of Spain's (BdE) balance sheet this morning. Once again, both lending to banks and TARGET2 liability rose sharply.
 |
| Bank of Spain lending to banks vs. TARGET2 liability It is clear that lending to Spanish banks is now funded entirely via TARGET2 (borrowing from the rest of the Eurosystem) rather than with deposits. In fact deposits at the Bank of Spain by the Spanish government and Spanish banks (excess reserves) have been declining since the second 3y LTRO. These sources of funding have since been replaced by TARGET2, as the Eurosystem outside of Bank of Spain is now fully supporting the Spanish banking system .  |
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