Banking, finance, and taxes
A Direct Bailout of E.U. Banks, TARP-Lite (SAN, BBVA, NBG, IRE, DB, UBS, CS, BCS, GREK, EWP, EWI, FXE)
Published:
Last Updated:
European leaders are taking the aid directly to the banks to stave off any added crisis. The futures in the U.S. are soaring and the markets in Europe are up big. This will sound a bit like the TARP as European leaders have agreed to take aid directly t the banks from the European bailout funds.
While Angela Merkel has maintained her pledge of no bonds (no direct debt sharing and assumption), today’s news is exceeding what the markets were hoping for yesterday, Currently the DAX is up 2.6% in Germany, the CAC is up 3.1% in Paris, and even the FTSE in the United Kingdom is up 1.6%.
ADR trading in the banks is up in early New York trading, as you would guess. Banco Santander, S.A. (NYSE: SAN) is up 5% at $6.46; Banco Bilbao Vizcaya Argentaria, S.A. (NYSE: BBVA) is up 6.1% at $6.87; National Bank of Greece SA (NYSE: NBG) is up a whopping 13% at $1.73; The Bank of Ireland (NYSE: IRE) is up 4.6% at $5.60.
The large developed nation banks are on the mend too. Deutsche Bank AG (NYSE: DB) from Germany is up 6.5% at $36.10.
Swiss banks are on the rise too as this solidifies their counterparties. Credit Suisse Group (NYSE: CS) is up 4% at $18.13 and UBS AG (NYSE: UBS) is up over 2% at $11.48.
Due to the overhang of the price fixing of LIBOR and the potential criminal implications of that effort, Barclays PLC (NYSE: BCS) is going against the grain and is down yet again by over 1.5% at $10.67.
The ETFs are on the med as well: iShares MSCI Spain Index (NYSEMKT: EWP) is up 4.8% at $24.23; Global X FTSE Greece 20 ETF (NYSEMKT: GREK) has not traded but is indicated higher; iShares MSCI Italy Index (NYSEMKT: EWI) is indicated up 5% at $10.96.
Today’s move allows banks to get aid without sovereign nations taking on the direct obligations on top of their stretched books and adding to their high rates of borrowing. In some ways, this may be like a TARP program but perhaps without as many strings attached.
The Euro currency was trading at $1.2573 on last look, up from $1.2431 yesterday, and this has the CurrencyShares Euro Trust (NYSEMKT: FXE) is up 1.5% at $125.70 so far this morning.
JON C. OGG
The #1 Thing to Do Before You Claim Social Security (Sponsor)
Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.
A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
