Saturday, January 16, 2016

Bail-Ins of Banks In Portugal

As the global economic declines, and funds necessary to support risking and failing debt shrinks, countries from Portugal, France, Italy, and even Germany will be forced to bail-in their banks. For example, Germany's savings banks, following new EU rules, will need to bolster their capital in the coming months. And, German is the strong player in Europe. Italy's four fold increase in bad loans since 2008, means the merging of weaker banks with stronger ones - forced consolidations and bails-ins are only a matter of time. Investors that own debt issued by German and Italian banks should be concerned about what's taking place in Portugal. Few recognize these sequence of events as the failure of socialism.

Headline: Bond holders team up to challenge bail-in for Portugal's Novo Banco

Jan 14 Private bondholders of Portugal's Novo Banco senior debt have teamed up to challenge a recent central bank move that makes their investments nearly worthless, and might sue various commercial banks that sold them the bonds.

A coordinator of the group told Reuters the debt holders formally registered a Lisbon-based association, grouping 55 investors with a total 7 million euros worth of bonds, on Wednesday, and now have up to 90 days to file a lawsuit.



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