Espirito
Santo Financial Suspends Shares, Bonds on ESI Exposure - (www.bloomberg.com) Espirito
Santo Financial Group SA, which owns 25 percent of Portuguese lender Banco
Espirito Santo SA, said it decided to suspend its shares and listed bonds on
the Luxembourg and Euronext exchanges due to its exposure to Espirito Santo
International SA. “Due to ongoing material difficulties at its largest
shareholder Espirito Santo International and ESFG’s exposure to that company,
ESFG has decided to suspend its shares and listed bonds, including the bond
issued by its fully-owned subsidiary Espirito Santo Financiere SA,” ESFG said
today in a filing posted on the Portuguese securities
regulator’s website. “ESFG is currently assessing the financial impact of its
exposure to ESI.” Banque Privee Espirito Santo SA, which is fully owned by
ESFG, on July 8 said there is a delay in payments of some of the last
maturities of short-term debt securities issued by Espirito Santo
International, or ESI. These delays affect “only a few clients,” Banque Privee
said. ESFG is 49 percent owned by Espirito Santo Irmaos SGPS SA, which in turn
is fully owned by Rioforte Investments SA, which is fully owned by ESI.
Banker
Suicides Return: JPMorgan Executive "Blasts Wife, Kills Self" With
Shotgun - (www.zerohedge.com) In what appears to the 15th financial services executive suicide
this year, yet another JPMorgan Director took his own
life. As IBTimes reports, Jefferson Township (New
Jersey) police report that the Global Network Operations Center Executive
Director, "Julian Knott, age 45, shot his wife Alita Knott, age
47, multiple times and then took his own life with the same weapon."
They are survived by 3 teenage children... As IB Times reports, JP Morgan executive director Julian Knott
blasted his wife Alita to death with a shotgun before turning the gun on
himself. The 45-year-old, who worked for the investment bank in
London until July 2010, shot his 47-year-old wife multiple times before
committing suicide with the same weapon …. Julian moved to the United States
from London in 2010 and was working at JP Morgan's Global Network Operations
Center in Whippany, New Jersey, at the time of the tragedy.
Wall
Street Finds New Subprime With 125% Business Loans - (www.bloomberg.com) Doug
Naidus made his fortune selling a mortgage company to Deutsche Bank AG months
before the U.S. housing market collapsed. Now he’s found a way to profit from
loans to business owners with bad credit. From an office near New York’s Times
Square, people trained by a veteran of Jordan Belfort’s boiler room call
truckers, contractors and florists across the country pitching loans with
annual interest rates as high as 125 percent, according to more than two dozen
former employees and clients. When borrowers can’t pay, Naidus’s World Business
Lenders LLC seizes their vehicles and assets, sometimes sending them into
bankruptcy. Naidus isn’t the only one turning to subprime business lending.
Mortgage brokers and former stock salesmen looking for new ways to make fast
profits are pushing the loans, which aren’t covered by federal consumer
safeguards. Goldman Sachs Group Inc. (GS) and Google Inc. are among those financing
his competitors, which charge similar rates.
Junk
Loans Turned Into AAA Debt at Record Pace: Credit Markets - (www.businessweek.com) Deals
packaging junk-rated corporate loans into securities with ratings as high as
AAA are being done at a record pace, fueling a boom in the underlying debt that
the Federal Reserve says is showing signs of froth. Led by Leon Black’s Apollo
Global Management LLC, $13.8 billion of collateralized loan obligations were
raised in the U.S. last month, an all-time high, according to Morgan Stanley
and data compiled by Bloomberg. Julian Black, a Cayman Islands-based lawyer who
helped raise more than $25 billion in CLOs in 2013, predicts as much as $120
billion will be sold this year, a record. “The market has been surprised by the
volume,” Black, the global head of structured finance at Appleby Global Group
Services Ltd., said in a telephone interview.
Genius:
IMF Pronounces Bulgaria's Banks "Safe" Just 2 Weeks Before Bank Run - (www.zerohedge.com) Earlier
this summer, IMF bureaucrats went to Sofia, Bulgaria to study the country’s
economic progress; and roughly a month ago, they released an official report
which stated, among other things, that Bulgarian banks are “stable and liquid.”
Then 2 weeks later, there was a run on two of the nation’s largest banks (as we
discussed at length here). But it's not just the IMF...the EU Commission
soothingly announced that "the Bulgarian banking system is
well-capitalized and has high levels of liquidity compared to its peers in
other member states." The lesson here is clear: The people in charge
of regulating the system and making these proclamations about bank safety are
totally clueless. Clearly, Bulgaria (and Portugal) shows that the
entire system can really be a bunch of smoke and mirrors.
Fears
over Portuguese bank Espírito Santo trigger Europe sell-off - (www.ft.com)
Portugal Telecom, Oi Fall as Espirito Santo Debt Trips Alarm - (www.bloomberg.com)
Portugal Telecom, Oi Fall as Espirito Santo Debt Trips Alarm - (www.bloomberg.com)
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