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Bank run on France's No. 2 Bank?

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posted on Aug, 10 2011 @ 09:30 AM

The Run On SocGen Begins? Bank Down 17% On Rumors It Is On The Verge

Following earlier news that French CDS hit a record high on a rumor of an imminent French downgrade, the bloodbath in financials, first started in Italy, with 3 consecutive halts in Intesa causing endless headaches for Italin investors, the red tide has now shifted over to France, where SocGen, three years after fooling the Chairsatan that the world was ending and pushing him to cut rates by an unprecedented 0.75% on what was a trader error, now succeeded in getting the chairsatan to extend ZIRP for two years... And still that is not helping. SocGen was down 17%21% as recently as minutes ago, on a repeat rumor that SocGen is indeed on the verge of insolvency, and that it participated in an extraordinary meeting convened by Sarkozy this morning. We are following the story and will let you know if we see any halt in the relentless selling of the bank which is rapidly becoming the next Lehman. Elsewgere, BNP was down over 8%10%, and Credit Agricole about -7.5%9.2%. "If credit default swaps on France are under attack that’s not a good sign,” said Yves Marcais, a sales trader at Global Equities in Paris. “That means that France is under attack and that’s worrisome. French banks hold a lot of French bonds." Translated: another vicious and quite toxic catch 22, stemming from the blow out in French CDS. When will they ever learn?

Today is not for the feint of heart.

Meanwhile, the DOW is losing more than 300 points as I type this...and believe it or not, only now does it really seem like panic is setting in...

Fasten your seat-belts folks. The contagion seems to be spreading...

It is no. 2 French bank behind BNP Paribas and the no. 8 bank in the european zone ahead of Credit Suisse...

Société Générale is the 3rd largest Corporate and Investment bank in the Eurozone by net banking income and the 6th largest French company by market capitalization. It employs 120,000 people, of which 75,000 in Europe, and maintains a presence in 80 countries.


edit on 10-8-2011 by loam because: (no reason given)

posted on Aug, 10 2011 @ 09:35 AM
reply to post by loam

Thanks for the info. Keep us updated on the happenings there in France. Everything is connected now. A big bank collapsing in a big country can be felt worldwide. This can even start the domino effect of bank runs.

posted on Aug, 10 2011 @ 09:53 AM
So no actual bank run but rather a decline in their equities? Should change the title perhaps.

posted on Aug, 10 2011 @ 09:58 AM
Just minutes ago:

France denies credit rating will be downgraded


European shares extend losses, French banks plunge

SocGen fell more than 21 percent at one point to as low as 20.16 euros, its weakest since March 2009.

And next door:

FTSE takes another hit as Bank slashes economic forecast and Fed warning triggers Dow Jones slump

Fear returned to the financial markets today as fresh concerns about the US debt crisis and fears over UK recovery helped to wipe out recent recovery signs.

In London, the FTSE 100 Index fell more thaan 4 per cent, erasing earlier gains, while the Dow Jones Industrial Average in the US was down by more than 2.5 per cent.

The turmoil came as the Bank of England warned that the UK economy's recovery could be derailed by global instability.

The Bank cut its 2011 growth forecast for the UK to about 1.4 per cent, from 1.8 per cent, because the economy faces 'persistent headwinds' from the slowdown affecting Europe and the U.S.

reply to post by jtma508

Originally posted by jtma508
So no actual bank run but rather a decline in their equities? Should change the title perhaps.

I think the punctuation in both titles speaks for itself.

Moreover, ask yourself if that was your bank what you would likely be thinking right about now? And if not you, then certainly your fellow depositors.

Let's hope it's nothing... But things haven't looked this bad in quite some time.

edit on 10-8-2011 by loam because: (no reason given)

posted on Aug, 10 2011 @ 01:26 PM
There is no doubt there is a bloodbath in financials lately due to the EU debt crisis. This has caused the trickle down with all including Asia and our largest banks in the US.

posted on Aug, 10 2011 @ 05:30 PM

Originally posted by loam
I think the punctuation in both titles speaks for itself.

How so? A "bank run" is when people rush to the banks to withdraw their cash. Banks don't keep but a small percentage of deposits on hand, so when there's a serious run they can find themselves short on cash pretty quickly. If they run out of cash they will typically close their doors until they can replenish the cash. Once the word gets out that the bank closed it's doors, then panic takes over and EVERYONE wants their money NOW. It just spirals out of control as it feeds upon itself, people rushing to banks to get their cash, banks slamming the doors, etc. Crisis in confidence. What you're describing here on the other hand is a crash in their stock price, totally different situation. It's possible it could result in a bank run if the stock keeps dropping, but it's not there yet (and therefore the thread title isn't accurate).

posted on Aug, 10 2011 @ 05:49 PM
Can somebody PLEASE EXPLAIN WHY the panic over these banks when they are apparently now better capitalised?

Global Banking Crisis Fears Lurch to the Foreground

posted on Aug, 10 2011 @ 05:50 PM
Some fun to lighten the day, The Long Johns

posted on Aug, 10 2011 @ 05:57 PM

Originally posted by earthling42
Some fun to lighten the day, The Long Johns

Here's mine.

It shows a moment when a banker from the future walks around
the body of another banker who has jumped from a window back in 1929.

David Grouchy

Timestop 3:54 - 4:45

Timestop 3:54 - 4:45
edit on 10-8-2011 by davidgrouchy because: (no reason given)

edit on 10-8-2011 by davidgrouchy because: (no reason given)

posted on Aug, 10 2011 @ 05:57 PM
reply to post by SavedOne

So when the poor take there money from a bank in mass its a bank run.
When the rich pull there money from the banks stocks in mass its business as usual.
Man the rich do have completely different laws and even definitions.

posted on Aug, 10 2011 @ 06:05 PM
reply to post by surrealist

France Societe Generale -commonly known as SocGen thats thier second largest bank.
SocGen owns 88 per cent of the Greek bank Geniki.

The Greek bank has already been bailed out by ECB.
Here Are The Details Of The Greek Bailout That Are Causing World Markets To Surge
France and Germany: One more bailout away from fiscal crisis.

France and Germany decided to bailout Italy and Spain for 2.3 trillion through ECB.

Germany began to crash and backed out. I think France is still trying to do it.

On this chart CAC40 is France. DAX is Germany.
edit on 10-8-2011 by JBA2848 because: (no reason given)

posted on Aug, 11 2011 @ 03:18 AM
Resistance is growing, Germany and the Netherlands do not want to raise the emergency fund.
It is increasingly dangerous for the northern countrys to keep funding the southern black hole.
I wonder how long it will last before the Eurozone is broken up in two parts.

posted on Aug, 11 2011 @ 06:26 AM
Asian Banks Commence Cutting Credit Lines To French Banks.

Reuters has just broken news that at least one bank in Asia, and five other in process, has cut credit lines to major French lenders "as worries about the exposure of French banks to peripheral euro zone debt mounts, banking sources told Reuters on Thursday." Why is this worrying? Because as is by now well-known, the PBoC has been as aggressive a buyer in the primary market of European market as most European banks, which as is well-known immediately turn and pledge said debt as collateral to the ECB for 100 cents on the euro, and the fact that its proxies are now quietly withdrawing from the European market as lenders of last resort, is probably far worse news than a rumor that the S&P may cut France.

posted on Aug, 11 2011 @ 01:34 PM

The French stock market fell 11 percent last week on the rumours, while doubts persist about the health of the Spanish and Italian economies and the future of the single currency.

Successive EU bailouts have dented Merkel’s approval ratings.

In her absence, Economy Minister Philip Rösler has proposed a euro zone stability council to monitor the economic health of its seventeen members.

Rösler now wants to present his ideas at an EU level.

But those final decisions will ultimately be taken by Merkel and Sarkozy.

The two leaders will meet in Paris aiming to produce “joint proposals” on how to improve euro zone governance and help its indebted economies.

This reminds me of McCains the economy is great moment. France and Germany keep bailing out countries in the EU and can't understand that they are destroying the EU in the process including France and Germany. But they keep saying its just rumors our economy is great our banks are rich as they give away more money. They better start looking at what is going on in the real world and not there fantasy land world. They are not bring other banks and countries up to there level they are bring them selves down to thiers. And that is the real world.

posted on Aug, 11 2011 @ 06:34 PM
Well one would think Reuters was a credible source, it appears not so.
The rumors are not true but i cant edit the above post so if a mod can delete the posting ( posted on 11-8-2011 @ 13:26) please do so.
I am unable to edit or remove it myself.

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