This is pretty big. It could be a mini-Lehman moment.
Reuters sources says Rioforte is preparing to file for creditor protection in Luxembourg. Bankruptcy is a messy, filthy business and some underhanded debt sales along with sales to clients were definitely involved and you never know how it will end.
Read the story I just wrote explaining the whole incestuous scheme. The whole market is watching Yellen but they might be watching the wrong thing.
The ECB and Portuguese central bank are supposed to be watching and they pointed out the original problems but who knows how deep those problems run. If the Espirito Santo Group was willing to sell 5% of Banco Espirito at firesale prices yesterday, they might think it’s a worthless asset.
