No Bids on Bank Shares
Greek bank shares were down the 30% limit again today, with some bank stocks not fetching any bids at all.
The Plunge in Bank Shares Drag Down Broader Market.
Greek bank shares sold off sharply for the third day in a row on Wednesday with buyers yet to emerge on a scale large enough to counter continued dumping of the stocks.
The Athens bourse's banking index .FTATBNK ended 27 percent lower, bringing the three-day plunge since Monday's open to 63 percent. The rout dragged the wider market .ATG down 2.5 percent although non-financials generally outperformed banks.
Alpha (ACBr.AT) and Piraeus Bank (BOPr.AT) both closed 29.6 percent lower, effectively at the 30 percent daily loss limit. The former has 1.06 million shares on offer and the latter 2.8 million shares. There were no buyers for either.
Peers Eurobank (EURBr.AT) and National Bank (NBGr.AT), which also fell sharply, attracted buyers towards the close, ending down 26.7 and 24.3 percent, respectively.
The new price levels mean big losses for bank shareholders, including the Greek bank rescue fund HFSF, which holds majority stakes in three of the four big lenders, hedge funds and other long-term foreign investors.
Diving Into Greek Bank Rescue Fund Details
Inquiring minds may be interested in the HFSF Rescue Fund.
The Hellenic Financial Stability Fund (Greek: Ταμείο Χρηματοπιστωτικής Σταθερότητας), or HFSF is a Greek special purpose vehicle created to help stabilizing the Greek banking sector in midst the Greek government-debt crisis.
Based in Athens, the HFSF was founded in July 2010 under Law 3864/2010 as a state-owned private legal entity with the purpose to “contribute to the maintenance of the stability of the Greek banking system, for the sake of public interest.” It began its operation on 30 September 2010 with the appointment of the members of the fund's Board of Directors.
The fund has been seeded by the European Financial Stability Facility (EFSF) with 50 billion euros to recapitalize Greece's banks.
