I don’t know what happened with the stakes of the Greek banks today. But they massively plunged 15.86% in the Athens Stock Μarket and had some local media described the day as “Black Monday” for the banks.
Reason for this disaster was apparently the fear that the recapitalization of the four systemic banks Piraeus, Eurobank, Alpha Bank and National Bank would need to raise the upper end of target that is 25 billion euro. Even though Greek economic news websites speak of 17 billion euro, they add that the business plans the four systemic banks have submitted for the “red business loans” might not be accepted by the European auditors.
Other media blamed for Black Monday, Finance Minister Euclid Tsakalotos who spoke to the Financial Times of the possibility of bail-in thus ‘triggering insecurity among traders,” so Newmoney.gr
“It is especially important that the banks recapitalizations concludes before the end of the year. Otherwise, there is risk that the new European Union rules will apply and they will impose haircut on deposits over 100,000 euro,” Tsakalotos said.
Reasons for the Banks Balck Monday could be also the side effects of the Super Blood Moon Eclipse in the early morning Monday or the Martians who abandoned their plans to acquire the to-be-privatized Greek Water Company after the NASA discovered running water on Mars.
Fact is Greek economy is far from recovery, the capital controls do not help the situation, the Greek banks need huge amounts of taxpayers’ money and that the taxpayers are not willing to give more money to the banks. The whole mixture creates a very fragile safety net that breaks apart by any bad news coming in.
Especially affected by Monday’s tragedy was the Eurobank with its shares reaching a historic low of €0,025.
Alpha Bank and Piraeus Bank followed with losses of -16.3% and -15.86% respectively and closing at €0,113 and €0,079
National Bank losses were at -12.88% while its share was €0,453.
Capital.gr notes that the bad climate worsened when “the HSBC estimated that the shares of Eurobank and Piraeus bank will be deleted from the MSCI Emerging Markets Index by the revision of November 12th.”
The General Index suffered losses of -3.03% and closed at 654,60 units.
PS I remember the projection for Greek banks shares was above €20, something between 22-23 euro. But that was in August 2008. Then the Lehman Brothers came and the whole Greek banks issue went downwards. The rest is history.
