Does anyone know, with a bit of certainty, what exactly a bail in would do to the pps? I've spent three hours!!!! Doing research and every piece of information I read is different then the next one. I came across a bail in article on a Canadian bank that wiped the share price to zero? I came across a bank that the pps was not affected at all. From what I get out of it, is that senior and junior bondholders are forced to participate in the restructuring, where a bail out isn't. From that, outstanding debt owed by the bank is payed back in equity value in the company it self. Now I'm confused cause if this was the exact case NBG pps a month ago would have been crushed and down to 15cents at this point. I also read that they restrict the selling of anything from senior stake holders if any form thus forcing them in the bail in. There are some huge hedge funds and investment firms with huge positions in some of these banks that won't be allowed to sell, and only allowed to sell proportions at the creditors approval. So they're trapped. David einhorn has a gigantic position In Alpha Bank. Now none of us I think hold huge positions. I get how some are saying dilution is coming.... But at what rate?? There already under a dollar, don't think they want to stay below that. A r/s would only cause the pps to rise and drop and further kill the pps, that doesn't make sense. But don't worry if I'm alarming anyone, there is no dept restructuring till Jan 1st 2016. But its hard to even get a handle on what the bail in will do cause we have no idea what NBG dept is? It's hard to imagine that the pps will be affected cause it has no value as to date. Fnna, went from $20 to 2 $20pps had value. I'm assuming that the senior and junior bondholders are the ones going to get screwed the worst on this. Also alarms me to the preferred shares of NBG. Common shares today took off the last hour and a half. Pull up NBGpA they finished down and never rose at all. Would think that the preferred shares would be the ones that owed dept would be given for. I've searched google, read wiki on the terms of bail in and bail out. Read wall street journal , read Bloomberg , read European companies. Only thing they all said in unity was I would hate to have significant money in any Greek bank. Cause under 100g is unsecured and can be wiped to zero. If anyone with knowledge or confident in how this might work out I would love to hear it. Don't want to hear from peps who say your a idiot its going to zero , dilution is coming. Want to hear why you think that? Based on what, and what will the senior and junior bondholders pay for? I'm long on this, and this is a complete straight view of the situation I believe. Not based on one side or the other. Not based on by my investment. Since there is little info out there on this, its up to us to here figure out what might come of the pps in the future.
