Banco Insolvente

"Portugal may use the Resolution Fund to recapitalize Banco Espirito Santo, Diario Economico reports, citing unidentified people linked to the process. Resolution Fund may inject more than €3 billion. A “bad bank” may be created for the toxic assets of the credit portfolio. Solution aims to rescue Banco Espirito Santo without spending taxpayers’ money, and is being prepared by the government and the Bank of Portugal. From Aug. 4, Banco Espirito Santo will leave the stock market and will be 100% owned by the Resolution Fund, an entity created in 2012 and financed by Portuguese banks and by revenue from the special contribution that the banking sector pays the Portuguese state... (Portugal's "less insolvent" smaller banks will fund the bailout facility to rescue the nation's most insolvent mega bank. What can possibly go wrong...Incidentally, the most fun we had was the part where they said no taxpayer money (read German) would be used to bail out yet another insolvent European bank. So much for Europe's self-sustaining recovery in which no bank will be henceforth rescued. That said, expect some combination of bail-out with bail-in elements, meaning the sub bonds are most likely about to be wiped out as well)-Tyler Durden ou Zero Hedge.