Thursday, May 23, 2013
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Bank stress tests
The issue of bank stress tests has been on the focus of mainstream media lately. However these stress tests are not really reliable: Most banks right now are operating with government help, a sure indication that they should have already been compromised in their operations had they not received this help. So how can they really claim that they are in any way "healthy"?
There is one exception however: The Greek Post Bank. This bank has very good indexes due to following a "safe" policy during the growth period.
Greek Post Bank and Agrotiki Bank (the state has a stake in both of them) have been targets of acquisition by the problematic, private-owned Piraeus bank (it marginally passed the stress test). Piraeus bank wants to acquire the Post Bank and Agrotiki in order to improve its own problematic position - mainly through the money that Post Bank has. Agrotiki on the other hand has indirect control of 40% of farmers land in Greece and is a huge leverage power for any private institution to control. The money offered by Piraeus are ridiculous and even if it was triple the initial offer, it would still be ridiculous - given whats happening. How can a problematic bank buy 2 banks bigger than itself which both have really enormous money or land capital?
For comparisons sake, the state received 328mn euro in 2006 for selling just 7.18% of Agrotiki bank, and now Piraeus Bank offers 370 mn to buy a stake of 77.3% (!!!).
The Greek media are propagandizing in favor of Piraeus buying Agrotiki and Post Bank and there have even been opinion poll metrics to check for peoples reaction to propaganda. In the meanwhile the media overplay the fact that Agrotiki failed the stress test and downplay entirely the exceptional performance of the Post Bank. This is done so that the public opinion is shaped to think that Piraeus will relieve the state of problematic banks.
It is entirely possible that Piraeus is just a vehicle of foreign interests in order to control the Greek banking system and the Greek land. Piraeus simply do not have enough money to save itself - how can it proceed to buy the two banks? This is fishy, to say the least.
Bank stress tests
There is one exception however: The Greek Post Bank. This bank has very good indexes due to following a "safe" policy during the growth period.
Greek Post Bank and Agrotiki Bank (the state has a stake in both of them) have been targets of acquisition by the problematic, private-owned Piraeus bank (it marginally passed the stress test). Piraeus bank wants to acquire the Post Bank and Agrotiki in order to improve its own problematic position - mainly through the money that Post Bank has. Agrotiki on the other hand has indirect control of 40% of farmers land in Greece and is a huge leverage power for any private institution to control. The money offered by Piraeus are ridiculous and even if it was triple the initial offer, it would still be ridiculous - given whats happening. How can a problematic bank buy 2 banks bigger than itself which both have really enormous money or land capital?
For comparisons sake, the state received 328mn euro in 2006 for selling just 7.18% of Agrotiki bank, and now Piraeus Bank offers 370 mn to buy a stake of 77.3% (!!!).
The Greek media are propagandizing in favor of Piraeus buying Agrotiki and Post Bank and there have even been opinion poll metrics to check for peoples reaction to propaganda. In the meanwhile the media overplay the fact that Agrotiki failed the stress test and downplay entirely the exceptional performance of the Post Bank. This is done so that the public opinion is shaped to think that Piraeus will relieve the state of problematic banks.
It is entirely possible that Piraeus is just a vehicle of foreign interests in order to control the Greek banking system and the Greek land. Piraeus simply do not have enough money to save itself - how can it proceed to buy the two banks? This is fishy, to say the least.