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Siemens Pulls €500 Million From A French Bank, Redeposits Direct With Ecb

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http://www.zerohedge.com/news/shocker-siemens-pulls-%E2%82%AC500-million-french-bank-redeposits-direct-ecb

In a shocking representation of just how bad things are in Europe, the FT reports that major European industrial concern Siemens, pulled €500 million form a large French bank, which is not BNP and leaves just [socGen|Credit Agricole] and deposited the money straight to the ECB. The implications of this are beyond stunning, as it means that even European companies now refuse to work directly with their own banks, and somehow the ECB has become a direct lender of only resort to private non-financial institutions! As Bloomberg reports further on the FT story, in total, Siemens has deposited between 4 billion euros and 6 billion euros, mostly through one-week deposits, with the ECB, FT says, cites the person. It isn’t clear from which bank Siemens withdrew its deposits, per the FT... but it is hardly difficult to figure out. BNP Paribas isn’t the bank involved, FT reports, cites unidentified person familiar with the bank. This story should be having far more impact on the EURUSD than any rumors about Greece lying it will fire all of its public workers only to make sure Eurobanks can survive one more day.

Can't find the Bloomberg source and not looked for the FT one.

Siemans doesn't trust the French? Bank run about to kick off.

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http://www.zerohedge...sits-direct-ecb

Can't find the Bloomberg source and not looked for the FT one.

Siemans doesn't trust the French? Bank run about to kick off.

Siemens has decided French banks are not worth the risk. Siemens probably did what other companies did during the '08 crisis, and that is create its own bank to get direct access to ECB credit while mainstream banks where impotent. I was told at the time that Peugeot SA (car company) had done it. Now they're using it to deposit direct at the ECB.

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http://www.zerohedge.com/news/shocker-siemens-pulls-%E2%82%AC500-million-french-bank-redeposits-direct-ecb

Can't find the Bloomberg source and not looked for the FT one.

Siemans doesn't trust the French? Bank run about to kick off.

Strangley, I tend not to believe stuff published on ZeroHedge. It often tends to be bull$hit.

Do the Bloomberg/FT articles actually exist I wonder? I would believe them......

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Siemens has decided French banks are not worth the risk. Siemens probably did what other companies did during the '08 crisis, and that is create its own bank to get direct access to ECB credit while mainstream banks where impotent. I was told at the time that Peugeot SA (car company) had done it. Now they're using it to deposit direct at the ECB.

Siemens are a very canny company financially. Their accounts department is one of the most profitable divisions running money through Dublin and such like.

Talking of Peugeot SA. They have just fired the SNCF as their freight carrier and hired DeutschBahn to move their cars around. SNCF freight is even more appauling than the passenger division mind.

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Strangley, I tend not to believe stuff published on ZeroHedge. It often tends to be bull$hit.

Do the Bloomberg/FT articles actually exist I wonder? I would believe them......

It's the main headline!

Siemens shelters cash at ECB

Up to €6bn transferred from French bank amid euro crisis

Ed: URL

Edited by yellerkat

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Strangley, I tend not to believe stuff published on ZeroHedge. It often tends to be bull$hit.

Do the Bloomberg/FT articles actually exist I wonder? I would believe them......

I find your lack of faith disturbing...

http://www.ft.com/cms/s/0/dca4cc08-e096-11e0-bd01-00144feabdc0.html#axzz1YQs29uII

Siemens withdrew more than half-a-billion euros in cash deposits from a large French bank two weeks ago and transferred it to the European Central Bank, in a sign of how companies are seeking havens amid Europe’s sovereign debt crisis.

The German industrial group withdrew the money partly because of concerns about the future financial health of the bank and partly to benefit from higher interest rates paid by the ECB, a person with direct knowledge of the matter told the Financial Times.

In total, Siemens has parked between €4bn ($5.4bn) and €6bn at the ECB’s facilities, mostly through one-week deposits, this person said. Only a handful of large companies have the banking licences that allow them to deposit cash directly with the ECB.

Siemens’ move demonstrates the impact of the eurozone’s deepening sovereign debt crisis on confidence in European banks.

It was not clear from which bank Siemens withdrew its deposits. A person familiar with BNP Paribas said, however, that it was not the bank involved.

Siemens and the ECB declined to comment.

Edited by Chuffy Chuffnell

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Strangley, I tend not to believe stuff published on ZeroHedge. It often tends to be bull$hit.

Do the Bloomberg/FT articles actually exist I wonder? I would believe them......

And the odds are that you would be wrong on both counts! :)

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Talking of Peugeot SA. They have just fired the SNCF as their freight carrier and hired DeutschBahn to move their cars around. SNCF freight is even more appauling than the passenger division mind.

I recently wanted to buy some EDF shares because of the dividend and was told by a fund manager that the head had a 'questionable record' and perhaps other interests at heart. The name of Vivendi popped up during the conversation as one of his 'less than stellar' performances (you can check what happened to it, it was spectacular for the wrong reasons).

The problem with those big French companies, public or private, is that new chief execs need to be approved by the government of the day and are usually changed when a new party takes power in France: as you can imagine, performance can be less than stellar in such conditions.

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I'd have thought the bigger story was that Siemens have c.6bn sitting around in cash on 7 day deposit!

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I'd have thought the bigger story was that Siemens have c.6bn sitting around in cash on 7 day deposit!

Tbh they are both big stories and together they create a massive story.

In effect Siemens is working on the premise of a massive crash and positioning itself to buy up any distressed assets as they appear. I would assume its aiming to go after assets held by countries that need cash fast, rather than companies as there is no reason for the short terms and such a large amount. The fact it is held with the ECB is what points to they are expecting to use it when the normal markets are not working hence why they have moved it out of the normal bank system into a system only available to the few companies in their position.

edit: Should say (as cant make any money from it so...) if I was going to guess Siemens is aiming to buy any Greek power plants that Greece would be willing to sell.

Edited by conflict

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If Greece decided not to pay up tomorrow, who is immediately in hock?

In the last figures I saw, French banks to the tune of around €60bn, Germany's to around €20bn, ours to around €14bn, and others in single figures (of billions).

So, basically, it's France that will take the full force of the BOHICA moment when the Greeks eventually decide to call it a day, hence Siemens taking pre-emptive action.

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Can't find the Bloomberg source and not looked for the FT one.

Siemans doesn't trust the French? Bank run about to kick off.

Not convinced the central banks are taking this threat seriously enough TBH.. soon as one goes, people look at who they owe money to and before you know it we're off again.

Since they've already decided large scale bank defaults are not an option they are going to look pretty silly if they end up running around like headless chickens again telling us that no one could have predicted it..

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This is a key part of the economic transformation unfolding - the banks are dead, long live the banks.

Tesco + Virgin: UK

http://www.moneyweek.com/investments/stock-markets/tesco-and-virgin-lead-a-raft-of-new-banks-47117

Larsen & Toubro:India

http://en.wikipedia.org/wiki/Larsen_%26_Toubro

Mahindra and Mahindra: India

http://www.bazaaredge.com/blog/2011/09/mahindra-re-iterate-overweight-jpmorgan/

Walmart : USA

http://www.nctimes.com/business/article_311e9ad6-ddb7-55de-8b98-f3fd01c784bd.html

What others do people know of? The old banks were pure play, the new banks will use finance as a means to shift product and tie in their suppliers.

I'll be covering this in more detail on my blog soon.

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This was reported on the R4 Today programme on the business news section at 0621.

In the style of everyones favourite EAT parody:

Italy today France tomorrow. (they joked that yesterday they had booked the interviewee to talk about Greece)

The number of Companies and Countries with a better credit rating than Siemans can be counted on you fingers, doing serious amounts of business with Siemens (with finance from them) will improve your own bank's view of your company credit rating...

Edited by koala_bear

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