Monday, Sep 29, 2008
The inevitable has happened.
BBC NEWS: Iceland nationalises Glitnir bank
The Icelandic government has taken control of the country's third largest bank, Glitnir, after it faced short-term funding problems.
Posted by renting2 @ 12:41 PM (474 views) Add Comment
7 Comments
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1. techieman said...
Jack C - yep looks like you were right re the icelandics! I have enough trouble concentrating on the UK. It looks now like even my (what some considered to be) appocolyptic stance is looking optimistic! Will any more banks be nationalised / rescused by a white night? I still doubt it but who knows how far this contagion has gone!
Am still betting on a turnaround tuesday from here. But will be a smallish punt.
2. mark said...
RBS doesn't look very safe....
3. jack c said...
@techieman - yes we had an exchange on this topic on Friday and for me it comes as no surprise - I also expect the other 2 Icelandic Banks that have a major UK presence to run into trouble.
I hope you are correct on "turnaround tuesday" - it could be an omen that the opening bell would not ring on wall st today and the DJIA has already dropped 161 points as I type.
RBS not in good shape - I'll post some info from Citywire if I get a chance.
4. jack c said...
@techieman - forgot to mention that I have heard unconfirmed reports that following the demise of Washington Mutual the Bond holders are yet to be paid out - this is I believe a first and has huge (HUGE) implications if true
Your thoughts?
5. uncle tom said...
Anyone read up on the Santander bank?
With a credit bubble bursting in Spain and their aquisitive antics, I can't help feeling they must be dancing on thin ice..
6. techieman said...
yes equity and bond holders not included. Bit of an own goal really, but lets see how this plays out. Think the govn will step in here, but someone missed the ball. If they dont then as you say would cause probs re financing, which will restrict further access to capital. Having said all that as things are would you buy a bond in a bank? I think they would be only paid a dividend anyway. i.e. as a creditor a lower % on their investment. I think its the saving of the counterparties at the expense of the providers of capital thats the issue.
7. jack c said...
@uncle tom - have not read up on Santander but just applying commonsense and thinking this debacle through I cant help thinking they are going to ultimately come out of this unscathed.
@techieman - thaks for your input as you say lets see how this plays out
I might add it's difficult to keep up today !