EUROBANKING: another hole, another heart-attack

spainmap

mesnipAs with Italy, I have been repeating since 2011 that Spain’s banks are in a parlous state. The ‘weak propping up the dead’ story in Italy has now seeped out into the mainstream media. As of this week, it’s time for Spanish banks to return to the red light area where whores are bankrolled by pimps.

On June 7th 2012, The Slog wrote:

‘….the word from Berlin this afternoon is that a deal is under the table allowing Spain to recapitalise its stricken banks with aid from its European partners – but avoid the embarrassment of having to adopt new economic reforms imposed from the outside….German officials said that if Madrid put in a formal aid request, funds could flow without it submitting to the kind of strict reform programme agreed for Greece, Portugal and Ireland.’

That is what duly happened. The EC nutters can deal with peripheral failure; Spain is far too big for that.

But it didn’t improve investor confidence. On September 2nd 2012, Zero Hedge wrote:

‘During the month of June alone $70.90 billion left the Spanish banks and in July it was worse at $92.88 billion which is 4.7% of total bank deposits in Spain. For the first seven months of the year the outflow adds up to $368.80 billion or 17.7% of the total bank deposits of Spain and the trajectory of the outflow is increasing dramatically. Reality is reality and Spain is experiencing a full-fledged run on its banks whether anyone in Europe wants to admit it or not.’

And on October 25th 2012, The Slog wrote:

‘Santander is the eurozone’s biggest bank by some distance.  It’s Q3 net profit picture, however, is grisly in the extreme: it was decomated from €1.8 billion a year ago to €100 million now. As I also pointed out in September, it is the Caja (property) disaster in Spain that remains hidden, fudged or just plain misreported: Santander blamed higher than expected property provision in the home country.’

Following which, relative silence. Spanish banks became just another elephant in the many-roomed elephant enclosure that it is the EC/eurogroupe/ECB phalanx of fantasy. On a  plastic table in each room sits a 4-ton elephant, with money under the table supporting its weight.

But then last month, Banco Popular’s desperation became apparent:

bancopopular

Oh dear….what to do, what to do?

Yesterday, ZH posted as follows:

“Popular is offering loans to its customers on the condition that they subscribe to the rights issue… and then deposit the €1.25 per share in their bank accounts,” asserts Marc Ribes, co-founder of BlackBird.

If Blackbird’s allegations are well-founded — and so far there’s been no official denial — Popular is in the process of taking the dark art of banking misdeeds to a whole new level [because] Such behavior is not just unethical; it’s illegal. Banks cannot lend customers money to buy the banks’ own shares. At least not in Spain.…[AND]

the governing People’s Party just received a €1.2 million loan from Banco Popular so that it could post bail for three former treasurers accused of operating a multi-decade slush fund to channel corporate kickbacks to senior party officials…Meanwhile, Spain’s fourth biggest party, the center-right Cuidadanos financed its last election campaign with a €4 million loan from (yes, you guessed it…) Banco Popular.

Right. So, um, if Popular goes up the pictures, so does half the Spanish Party system. And while Mario Draghi quietly keeps  his Ponzi-scheme money in-money out dance going (illegally), Popular blatantly uses its own customers’ money to plug more holes (illegally).

Hold it up to the light, not a Rule of Law in sight.


 

Attention British persons: do not expect to hear anything more about this before June 23rd. But from media based abroad, you could well read more about this:

doomloop

and this….

Sabadell

Hmm. Acquiring to diversify out of a mess at home. A quarter of all profit coming from the crap bit bank TSB? Would you have put up £2.8bn to buy it?

UK, Italy, Spain, Ireland….Spanish desperation quickly becomes EU contagion. Rearrange the following well-known phrases:

from EU no brainer is a Brexit  

no brainer Brexit is from a EU

Is no Brainer EU from a Brexit?

Yesterday at The Slog: A statistics-free rationale for Brexit

41 thoughts on “EUROBANKING: another hole, another heart-attack

  1. I view the UK joining the EU like a trojan horse by formally joining we will end up crushing the EU. Spain as in TBTF and all the slush money to keep it going we are just add another big one to the pot, oh dear! Under the current economic conditions joining the EU no more half assed 50/50 signing up then you are either all in or all out.

    Being either is actually better for the EU than the 50/50 hence why the pound and BOE has to be removed if BREMAIN.

    Not wittering on on this now … I don’t mind paying for my own choices, but those who chose BREMAIN can pick up the tab for the fiasco to be so this little ditty …

    Ever had a feeling on a dead cert in a race?

    In this case I am backing the donkey (worst performer fit for the knackers yard) to come last but if you think it will win (worst performer morphs into a Shergar / Pegasus) your money is lost not mine. For elites now go on, you can pay for this when it all fails and we can turn you into an own brand tin of Shergar.

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  2. Must be five years ago I read Spanish government had taken cash out of university pension funds to pay interest on loans. It’s been a while but as they say ” How did you go bust ” “Slowly then all of a sudden”.

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  3. Part of the problem in Spain was that people invested their cheap money in speculative building… rather than investing in industries and other economic activities that would provide long term work. With the unveiling of the US banking fraud, known colloquially as “the banking crash of 2007”, house values in Europe plummeted.

    This was in part because European bankers had been daft enough to buy the fraudulent US securities. We all like neatly brushed hair and a well tailored suit, don’t we?

    https://gemmasponderings.wordpress.com/2016/02/14/wining-and-dining/

    I mean, it wouldn’t have been so bad if the American banks – private institutions regulated by law – had actually done what they said they would, and guaranteed them. But they didn’t: they turned around and told everybody “we know we got the boys to put AAA on the scrambled egg because it looked like gold, and guarantee them as though they were sticks of gold. But we’re American banks, and the only way forward is for everybody else to pay instead of us”.

    The US taxpayer paid up as well, thus helping the rich and fat to become richer and fatter.

    The Spanish housing market was colateral damage (along with a few other details*) and the Spanish banks that had poured money into it. They could cope with the problem as easily as the American banks: they squealed loudly and the government snapped its heels, did a Roman salute and paid up.

    Legal, illegal, what does it matter to a bank, just as long as they get their money?? It’s all a bit like the EU itself… or, come to that, Westminster.

    (*Details of this kind are irrelevant to a banker).

    Liked by 2 people

  4. Banks create money from thin air.
    When the great Financial Crash occurred in 2008, Barclays Bank was one of the many UK Banks in trouble. Alistair Darling offered to inject liquidity into the Banks in exchange for shares ,to be held by the UK Govt.
    Barclays was one of the few who turned down this offer. Instead they offered a massive billion pound loan to Middle East Investors, who in turn purchased Barclay Bank shares.
    Voila !. problem solved, money created from nothing bailed Barclays out , without Govt interference.
    Of course this is illegal, but the UK irregulators (sic) turned a blind eye.

    Liked by 1 person

  5. I am beginning to think that it matters not a jot whether we are in or out. From where I stand not one iota of ‘change’ has improved anything anywhere, it has consistenly degraded in the economies, employment, banking sectors, manufacturing, of all members, just about everything you can think of has been debased. There has to come a ‘critical point’ a point of no return where it will all collapse into itself, where we are on that scale is anybody’s guess. It is, I believe inevitable unless we get a serious step change in outlook and policies from those in charge but, that’s camel and eye of the needle stuff so, don’t hold your breath on that one.
    It’s the bit it the middle that’s just such a waste.

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  6. I’ve posted before how the 4th Reich intend to privatise the NHS thru TTIP.( more likely TiSA) I see that Corbyn has now come out and said that he will VETO TTIP. How exactly is he going to do that, because once it passes in EU law – game over

    Or am i missing something?

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  7. I don’t think there would be any warning of a real banking collapse. As you say, these stories have been floating around for years and no doubt someone is making money from them.

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  8. I, too, wonder if in or out makes much difference at this stage. I suspect the EU is a sinking ship but ever so slowly but as the sinking becomes more obvious more and more people will start swimming away from the ship. Had I a vote, it would for Brexit as I am no fan of the EU. I was always EEC over EFTA and even more strongly EEC over EU.

    Liked by 1 person

  9. Tom

    Stories? I think you’ll find the figures are rather more evidentially based, and far less easily dismissed, than that.

    PS Is there any particular reason for your reticence about explaining your comments when other threaders question or discuss them? Some of us are getting curious..!

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  10. Bertie Bear nothing (in politics(economic policy)is irreversible and the more corrupt something is the easier it is to destroy!

    Desmond Getting rid of central banks is the next step for those wanting to be unaccountable! they (central banks)can bring in policies that effect large areas,stopping this ability restrict change! therefore uphold their hegemony !

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  11. Before the banking system implodes, the war on cash has to result in the banning the of it.

    Stand by for the war on cash to intensify to a crescendo.

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  12. Banco Santander boss Ana Botin is attending the Bilderberg conference in Dresden at the moment. It would be nice to know who she is talking to there… But I think that, as John suggests, Banco Popular is a much bigger red flag now. And the Spanish general election rerun is on 26 June.

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  13. KFC

    I am beginning to think that it matters not a jot whether we are in or out.

    It will make a lot of difference to Europe if Britain leaves. For one thing, the Europeans won’t face indiscriminate vetoes from the corporations Britain.

    Britain’s latest prank has been to veto tougher regulations on tax gathering…

    … well, we know it’s not Britain talking here, don’t we? It’s the faceless corporations pulling Cameron’s strings.

    Does anybody remember when Britain had a steel industry? Oh! It still does? Well, it still does in spite of all the government’s efforts to see it smashed. Britain vetoed tariffs on Chinese steel, thus undermining it’s own industry.

    Brexit! Bring it on!!

    Liked by 1 person

  14. Well, most interestingly today, the BBC, that bastion of ‘Anyone who even considers Brexit is in need of counselling for mental afflictions’ even-handedness, is reporting that ‘there may be a UK general election before the year is out’.

    Of course, they may simply be hypothesising an event they find unlikely to happen (a Brexit vote), but I have to say I’m fairly shocked that they even published it. I mean, why worry until the Titanic has hit the iceberg. Telling the passengers that there are loads of icebergs around isn’t what the captain wants to do. It causes trouble without solving any underlying issues.

    They openly say in the article that ‘the Conservatives’ immigration policy is in tatters’, suggesting that if Boris took over he might be minded to beef it up somewhat. Or talk about beefing it up every day for a month. Or destroy the career of any journalist who published anything suggesting that nothing had changed under Boris.

    What appears to be clear is that the BBC has finally entered purdah itself. It would be going too far to say that it had been even-handed to date.

    But perhaps the heroin addict has been forced into cold turkey for a fortnight or so…..

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  15. It is clear that the rules only apply to those outside the governing elite, who are not only unaccountable but also doing it for our pwn good!
    Bye the by, I wonder how much Banco Popular ha loaned to Spanish football clubs?

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  16. I don’t think unsere geliebte Mutti thinks that; apart from anything else, it would destroy the top end German car business.

    Why do you think the EU is giving Cameron media and monetary support….because they want to ‘bring it on’?

    The EU will lose €118bn of cash flow overnight, and €93bn of trade turnover over time.

    Vetos, schmetos…Britain loses more veto votes than all other EU nations put together.

    These are facts Gemma, FACTS….it’s the munnneeeee.

    Liked by 1 person

  17. I know it’s the munneeee, you know it’s the munnneeee….

    but in Britain’s case, it seems that the corporations get the money and few others.

    As to the EU supporting Cameron, is it surprising when the EU stands for the kind of democracy Britain has right now: one that you can buy by the yard?

    As to your comment “Britain loses more veto votes than all other EU nations put together” – how can one vote on a veto? Or are you saying that more British legislation has been vetoed than Britain has vetoed others? The point here is: what is Britain trying to push on Europe that Europe doesn’t like?

    After all, Britain doesn’t like tariffs on steel… because of Chinese munnneeee

    Britain doesn’t like enforcing tax codes … because of Corporation munneeee

    It really is all about the munneee. The issue here isn’t that Britain votes for money, it’s whose money has bought it.

    PS VW will have to stump up $16 trillion to the US government because Merkel doesn’t support them. Despite all the facts about emissions cheating… https://www.theguardian.com/business/2016/apr/21/all-top-selling-cars-break-emissions-limits-in-real-world-tests

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  18. Oh dear, I do try to keep the lid on my emotions but I do have an impulsive side… i get so excited when I can share my extreme knowledge with everyone. My fingers type faster than I can think. As I write I am thinking that everyone will be so impressed with my whole grasp on everyday financial matters that normally only the senior bankers are privy too.
    Anyway, tonite I’m going dancing with my new man again. We had a wonderful weekend and he phoned me this morning to say that he was very impatient to see me again and how proud he is to have me on his arm, especially when I wear my high heels that go clickety clack and all the men turn their heads and look at my wonderful legs. Tonight I’m wearing my ….
    special dress….so I’ll tell you about it next time.

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  19. TROLL ALARM!!

    Can’t somebody take him* down to the sweetie shop – but please make sure he takes off his sister’s skirt, or he’s going to feel awfully embarrassed when the shopkeeper asks him if he wants pink lollipops

    That would be too shaming for him, wouldn’t it? So mummy and daddy, give him some of the love he never got when he was six, and still needs to express. Gobstoppers, licorice, a mars bar? Whatever it takes, give him something to think about ;-)

    (*and it IS a him, guys. Girls can tell, even if grown men can’t)

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  20. Gemma i do realise he is a he! but when boys are hitting girls over the head with caveman truncheons,pulling their hair and dragging them to another lair!pinching them!and generally just making a nuisance of themselves out of inadequacy,the one thing they can’t handle is being ignored!

    Liked by 1 person

  21. Gemma

    If you dislike him* so much, why do you keep feeding him*? Or perhaps you don’t find the attention as unattractive as you’d like us to think you do. Whichever, we know it’s not you so just sail on through. PS This comment should not be construed as any sort of pretext for a dialogue, I don’t think I’m up to it!

    Liked by 1 person

  22. mro – I was in a supermarket near Switzerland 2 weeks ago and happened to open a copy of 50 Shades of Grey. A random look had me in stitches. How the hell can anyone take that shit seriously?

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  23. Hiero, I do understand that there is one rule for the boys, and another for the girls.

    That the boys cannot explain it does not change the facts of the matter. Just remember that when a boy was trolled, all the boys crowded around to tell him how sorry they were for him… including JW himself! But that is when a boy is trolled.

    When girls are trolled, they are told that being trolled is like having their hair pulled, and as such is normal behaviour in the playground and girls should grow up and get used to it.

    It’s how modern males think.

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  24. gemma this is why? your so miss understood,you miss understand others!you imply am saying you should put up with it!,am not saying that, take back the power starve him of what he craves ,your attention! its not normal behaviour its Neanderthal behaviour ,most men have evolved and grown out of such behaviour,he’s either young and hasn’t out grown of it! or stupid,but you have very few tools with which to achieve what you want,its your choice,I’ve made my recommendation,your under no obligation to heed it! either!
    But please don’t claim i believe it to be normal! or condone it! even in fun!
    I’ll say no more on the matter,since i wouldn’t want to be misrepresented!
    Am unaware of the trolling of anyone else on here,and am disappointed you feel you are!

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  25. Ghost.

    How can I “take back the power starve him of what he craves” – when it isn’t me he craves. You have to understand the paradox: the irritation he feels at not understanding the things I say* is not going to go away because I starve him. The only way to do that is to forego my right to free speech – but my being quiet will not solve his problem.

    (*just look at what he writes: he can’t understand me, so it has to be my fault.)

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  26. Well?

    He’s not going to stop is he? Because he gets confused by what I say, and it annoys him that he does.

    That’s my fault, isn’t it?

    That’s men saying that women should grow up and accept that these things happen – which is only making an excuse for the men who can’t get their heads around something relatively simple.

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  27. @Gemma

    The thing is, I suspect that most reading the Slog are all intelligent enough to know that the troll’s comments are not from you, despite his/her avatar. I’m sure most Sloggers ignore his/her comments as he/she is clearly an arse who gets pleasure from riling you. In my opinion, the suggestions above are eminently sensible as every time you respond you are satisfying his/her urge for attention and have confirmed that the barb has struck home . I suspect very few of us need your troll warnings although I do understand that his/her efforts must be irritating.

    Liked by 2 people

  28. Anybody looking for an economic case for Out (bypassing the Etonian vs Etonian kabuki theatre), try watching this:

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  29. John – are you allowed to write about what is happening in France? Or do walls have ears as I thought they do?

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