The French are Running, The French are Running…..BNP PARIBAS, announces huge earning Loss for Q 3.
For those of you who think that BNP Paribas is a new Yoga, your wrong. It happens to be the Largest French Bank…..So why am I writting you all, well they just announced a huge losse in profit today. It seems they are writting off 60% of the value of its holdings in Greek Debt… Laymens terms:
The Greeks took out loans to keep the party going. Greece is in economic quicksand. So many large banks went on to write down half or more of their exposure to Greec. When a new aid deal for Greece was announced on Oct. 27, its demand for a 50 percent “haircut” on the loans merely codified what a number of banks had already put into practice.
Initially BNP Paribas and Societe Generale had come under fire for not moving quick enough to mark down loans to the country. This started the tumble of their respective stock prices.
BNP reported 3rd Quarter loses down 72% from the same period a year earlier. Greece is killing banks exposed to its loans like those slow motion scenes in 300………
“The plan to reduce funding needs in dollars and the group’s placement capacities helped it minimize the impact of the crisis that occurred in the monetary and financial markets this summer,” as said in a statement by the Banks chief executive, Baudouin Prot.
Compliance with new capital rules will nonetheless come at a cost. BNP said adjustments would cause gross operating income to decline by 750 million euros and result in an additional 1.2 billion euros in costs and losses.
So what does this mean? A lot of people working at BNP Paribas, are going to get a lot less money in their bonuses and potential new year raises…
Time to Run not walk to the nearest exit for future career growth opportunities, my dear BNP-Friends and as usual, I am here for you.. Call or email.
Thank you for your Time and Efforts,
Senior Vice President, Financial Risk & Compliance & Technology Division
F: (914)-355 -2160