What's up with SocGen, down 15 %

fred252

http://www.rte.ie/news/2011/0810/markets-business.html

is the nose dive based on rumours alone?

Dirk Gently

fred252 wrote: »

is the nose dive based on rumours alone?

since when was anything else required?

beeftotheheels

FT thinks it is fear over the French rating

http://www.ft.com/cms/s/0/8b773da8-c33f-11e0-9109-00144feabdc0.html

Definitely not Izy's post on them selling gold below the spot rate

http://ftalphaville.ft.com/blog/2011/08/10/649746/theres-a-new-gofo-table-in-which/

fred252

beeftotheheels wrote: »

FT thinks it is fear over the French rating

http://www.ft.com/cms/s/0/8b773da8-c33f-11e0-9109-00144feabdc0.html

Definitely not Izy's post on them selling gold below the spot rate

http://ftalphaville.ft.com/blog/2011/08/10/649746/theres-a-new-gofo-table-in-which/

if they had been selling gold below the spot rate what would that have indicated?

beeftotheheels

...chaos. The only reason you'd sell at appreciating asset (and gold is appreciating at the moment as one of the few remaining havens) at less than the current market value is because you have no choice. It would probably suggest some of their creditors were at the door. Its never happened that I'm aware of with gold, only sure thing is that it would have meant something really really bad.

Sell off today was all French banks mind and not just Soc Gen although Soc Gen were the only ones to "deny all market rumors", I mean they didn't even define the rumors that they were denying, they just issued a blanket denial.

Daily Hate apologized to them for saying that they were broke yesterday.

http://www.dailymail.co.uk/money/markets/article-2024243/Apology-Mail-Sunday-article-Soci-t-G-n-rale.html?ITO=1490

nesf

This forum is about the Irish Economy, not stocks on the French stock exchange.

Moved.

Speculator

Soc Gen Asks regulator to investigate rumours hitting shares:

http://www.reuters.com/article/2011/08/10/us-socgen-investigation-idUSTRE7795G920110810

later12

Soc Gén & Credit Agri bouncing back with a vengeance today so far, up well over 6%, but SG still down 33% in past two weeks.

It's clearly not Europe's Lehmans though. I'm not sure Europe can conceivably have a Lehmans.

later12

Scratch that, gains reversed, Soc Gén now down about 8% in the day. European stocks down significantly this lunchtime too. Financials are in a bear market territory.

beeftotheheels

nesf wrote: »

This forum is about the Irish Economy, not stocks on the French stock exchange.

Moved.

Suspect that the post was less about Soc Gen and more about the French AAA and Eurozone crisis hence strikes me that the original home was the best.

Seems that RBS now believe that the issue was Soc Gen's short term financing which probably reflects on all French banks (and the French sovereign) even though I suspect this might be another case of a liquidity crisis creating a solvency crisis. I mean Soc Gen managed to mark their impairment to market, Allianz, Commerzbank and RBS managed to mark their Greek bonds to market (over egging the pudding though that might have been) yet BNP Paribas couldn't find a market, transferred them to level III and marked them to model??? Markets should be routing BNP on that, not Soc Gen (my €200 in France is safe in CA).

On the flip side it makes one wonder whether the NAMA write-offs were a good thing, did we succeed in accelerating the write-offs in our banks at a time when the markets could absorb them? Could our banks be in a better position than the french banks right now? And Barclay's, they pulled one rabbit out of a hat, surely the markets cannot allow them do that again.