First Italy, Now Portuguese Banks “Unexpectedly” Need A Taxpayer Bailout
- First Italy, Now Portuguese Banks “Unexpectedly” Need A Taxpayer Bailout
by Tyler Durden, http://www.zerohedge.com
Last December 30, creditors in Portugal’s Novo Banco received a very unpleasant parting present to 2015: a bail-in, which sent their bonds crashing from just shy of par to barely above worthless. (chart top of post)
As a reminder, Novo Banco was the “good” bank forged from the ashes of Banco Espirito Santo which had to be bailed out by the state in August of 2014. The idea was to sell Novo Banco to pay for the cost of the bailout, but the auction process eventually floundered amid turmoil in Chinese markets (at least two of the potential bidders were Chinese) and uncertainty about whether this “good” bank would in fact need more capital given the elevated level of NPLs already on its books.
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