BANCO ESPIRTO SANTO E (BKESF)

[Sobek]

The bank was split into a healthy bank, Novo Banco (privately held) and the toxic assets remained in the existing bank BES (BANCO ESPIRITO SANTO.)

BES is the publicly traded company that is 50% of the entire bank being sold. That is why up until last week, they have had such a difficult time selling it.

If they were just selling the "good bank" this thing would of been sold well over a year ago but it all has to be sold, toxic assets and all.

It's also why when they tried to IPO JUST Novo Bank it was shot down and they were laughed out of the regulation department.

BES was bailed out just like the big American banks were. A bank of this size does not just disappear nor do the toxic assets. If they want to sell the bank its a package deal, period.

Believe it or not, it all has a value and someone sees it and made an offer.

Just like when American NPL's were considered to be worthless toxic assets after they ripped off hundreds of billions of dollars from Americans, the banks still had to sit on them and include them in their balance sheets. Now they wrap them up and sell them to companies like BX or RESI who turn them into profitable rental properties or resell them for profit as the market is recuperating.

There's value in debt believe it or not.