At Bronte we talk a lot about French banks. But we have not owned any of the majors since Greece started looking shaky. We used to own Credit Agricole SA - indeed when we started Bronte it was one of our largest positions. But their exposure to Emporiki (the number 5 bank in Greece) scared me. Indeed I blogged about it once.
We have an estimate of their largest possible loss at Emporiki - and it is probably a good estimate - but hey - this is a crisis and its pretty hard to trade that estimate. The main issues are found on page 70 of 236 of their results presentation (that is where customer assets, customer liabilities and other funding needs are presented). Whether the loss in Greece is 4 billion or 12 billion Euro hardly counts...
Anyway I just bit the bullet and purchased a position in Credit Agricole. My business partner didn't like it - indeed he argued strongly against it.
So we sold.
We made a profit - after commissions - of 412 Euro on the only day trade Bronte has ever done.
My name is John and I am a day trader.
Kind of makes you feel dirty...
Wednesday, September 14, 2011
Posted by John Hempton at 8:26 PM
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