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Re: Bankia Parent Revises 2011 "Profit" Of �41 Million profit to �3.3 Billion Loss,,,,,,,,,,,,,,,LOL oops. Missed that guestimate by just a few mill......

By: killthecat in ROUND | Recommend this post (0)
Tue, 29 May 12 5:13 AM | 31 view(s)
Boardmark this board | De's Test Board 		Msg. 41465 of 45651
(This msg. is a reply to 41464 by capt_nemo)
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BFA-Bankia, the bank nationalized the same week, said on May 25 it was taking 8.5 billion euros of provisions on top of those demanded by the two decrees, as it sought a 19 billion- euro state bailout. Bankia shares fell as much as 29 percent in Madrid trading today.


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The above is a reply to the following message:
Bankia Parent Revises 2011 "Profit" Of €41 Million profit to €3.3 Billion Loss,,,,,,,,,,,,,,,LOL oops. Missed that guestimate by just a few mill......
By: capt_nemo in ROUND
Tue, 29 May 12 4:41 AM 		Msg. 41464 of 45651

Submitted by Tyler Durden on 05/28/2012 19:10 -0400

Bank Run
Federal Deposit Insurance Corporation
Google
Nationalization
Reuters

It is rather amazing what one finds when a company which previously had allegedly posted a profit of €41 million, somehow becomes insolvent, needs a nationalization to avoid a full out liquidation, and gets bailed out by the state. One of the first things one finds is that the profit pitched to that particular class of gullible idiots, known as shareholders, was an outright lie. And yes, on that one very rare occasion when an auditor refuses to sign off on a bank's financials, in this case Deloitte, run far, and run fast. Instead what one finds is a massive loss. From Reuters: "BFA, the parent group of nationalized Spanish bank Bankia said on Monday it had restated its 2011 results to reflect a 3.3 billion euro loss, rather than a 41 million euro profit, following a bailout from the state. In a statement to the stock exchange regulator, BFA said the restated loss reflected a review of its loan portfolios and capital needs after a new audit and as part of the clean-up plan implemented by the government." Well, duh, something "new" better be reflected, or else the general public may just get the impression that banks are merely pulling numbers out of their glutes, that the entire balance sheet, income and cash flow statements are just a jumble of utter BS, and that keeping one's deposits in a system predicated on lies and fraud may not be the smartest thing. But no: that would imply one is inciting a bank run, and that is frowned upon by the very same government which does everything in its power to facilitate just the data manipulation that magically results in a profitable bank being on the verge of liquidation.

But that's not all. According to Spain's Expansion, the total loss could be far worse, more than double the just reported, to a total of €7 billion. Google translated:

http://www.zerohedge.com/news/bankia-parent-revises-2011-profit-%E2%82%AC41-million-%E2%82%AC33-billion-loss?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29

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