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m22au
Registered: Mar 2002
Posts: 3138 |
02-06-12 11:12 PM
Bloomberg says that NBG rallied today due to relief that it (and other Greek banks) will not be nationalized.
http://www.bloomberg.com/news/2012-...hens-mover.html
By "nationalized" I think they mean management control of the banks, in addition to holding equity of the banks.
From my searches today it appears that recapitalization of the Greek banks will be
"through common shares with restricted voting rights, a banking source told Reuters on Saturday."
http://www.reuters.com/article/2012...E8D40KG20120204
This seems to match the hints given by the Prime Minister
http://www.ekathimerini.com/4dcgi/_.../02/2012_426204
According to the prime minister’s statement, the leaders concurred on four points:
4) The recapitalization of banks through a combination of measures that safeguard public interest and ensure the banks’ managerial autonomy.
Reading between the lines, I assume that:
"Safeguard public interest" means "government gets substantial equity stake"
and
"ensure the banks’ managerial autonomy" means "we are going after financial control but not management control".
I'm short NBG, and looking to add when details of the recapitalization is formally published.
Any thoughts?
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m22au
Registered: Mar 2002
Posts: 3138 |
02-06-12 11:17 PM
http://www.reuters.com/article/2012...E8151TW20120206
ATHENS | Mon Feb 6, 2012 2:14pm EST
Greek banks, which hold many Greek government bonds, will require 40 billion euros to replenish their capital after a debt swap plan that will hurt private creditors, Finance Minister Evangelos Venizelos has said.
Venizelos wanted the state to bail out the banks by issuing common shares, to make sure that taxpayers will be properly compensated when bank shares recover. Fearing this might lead to nationalization, the troika of EU, IMF and European Central Bank inspectors have pushed for alternative ways to finance them, such as non-voting shares.
A banking source told Reuters on Saturday that Athens had agreed to recapitalize the banks through common shares with restricted voting rights, but officials have not confirmed this.
Papademos said on Sunday that party leaders had agreed to measures that secure the public interest but also the banks' business autonomy, without giving details.
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m22au
Registered: Mar 2002
Posts: 3138 |
02-07-12 11:08 AM
"Greek Bank Aid Will Be Mostly in Common Shares, Imerisia Reports"
http://www.bloomberg.com/news/2012-...ia-reports.html
Seventy percent of a government recapitalization of Greek banks will take the form of common shares carrying no voting rights for three to five years, Imerisia reported, without citing anyone.
The remaining 30 percent of government aid will comprise common shares with voting rights, preferred shares and convertible securities, the Athens-based newspaper said.
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