Having waited until after the US equity markets closed, Portugal’s troubled Banco Espirito Santo unveiled an enormous EUR 3.577 Billion loss – that is 15 times larger than the loss the bank suffered a year earlier. The data – to end-June, before the crisis really got going – already shows notable deposit flight, a 73.1% plunge in banking income, and a EUR 3 billion collapse in repoable assets (i.e. liquidity). On the heels of this Portugal’s securities regulator has enforced a short-selling ban on BES… we suspect they would not have done that if all was systemically well in Portugal.
Highlights (or lowlights) of the data as of June 30th – before the crisis escalated
A collapse in banking income
Plunge in liquidity, collapse in Net Income, jump in operating costs, and tumble in total equity…
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With the President warning this is systemic, Draghi better hope they can figure out a bailout (or bail-in) soon…
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Full data release below:
via Zero Hedge http://ift.tt/1rHTSIV Tyler Durden