BNP Paribas slips 3.2% after suspending fund valuations

UPDATE:
Make sure you read the comments with an interesting story about the ECB providing liquidity and especially the spike in overnight lending rates for all the major banks up to 6 percent ( a 65 point jump overnight) . I can smell fear.....

Ich kann Euch empfehlen die Kommentare durchzulesen. Dort finden sich spektakuläre Infos zur ECB die anscheinend eingreifen muß sowie eine Explosion der Interbankensätze bis zu 6% ( plus 65 Baisipunkte) . Ich kann die Angst förmlich riechen....

The markets in Europe turned south after this news........Thats´s the same bank that just said one week ago that their subprime exposure is under control......The CEO was maybe right with the direct BNP exposure but this doesn´t help clients of their asset management division ... Let the run for the money begin.....

Die Märkte sind mal eben ins Minus gedreht aufgrund dieser Nachricht......Noch vor einer Woche hat sich der CEO hingestellt und darauf verwiesen das deren Subprimeverwicklung unter Kontrolle sei.....Für sein eigenes Institut mag das wohl zutreffen, die Kunden von BNP Asset Management sehen das wahrscheinlich anders.....

Shares in French banking group BNP paribas lost 3.2% early Thursday after it announced that it's suspended redemptions and the calculation of the net asset value of three of its funds due to turmoil in the credit markets.

"The complete evaporation of liquidity in certain market segments of the US securitization market has made it impossible to value certain assets fairly regardless of their quality or credit rating," the bank said

> On the other hand no mery for the investors of the funds.... They should have hear the crashing sound coming ..... :-)

> Auf der anderen Seite null Mitleid mit den "gefangenen" Fondsinvestoren....Die hätten den Sound vom einbrechenden Immobilienmarkt seit Monaten hören müssen..... :-)


Bloomberg
BNP Paribas SA, France's biggest bank, halted withdrawals from three investment funds because it can't ``fairly'' value their holdings, as concern over U.S. subprime mortgage losses roils credit markets.

BNP Paribas will temporarily suspend the calculation of net asset value for the funds, which are called Parvest Dynamic ABS, BNP Paribas ABS Euribor and BNP Paribas ABS Eonia, the Paris- based company said in an e-mailed statement today The ABS Euribor fund's assets dropped 18 percent to 850 million euros between July 24 and Aug. 7, according to data compiled by Bloomberg. The ABS Eonia fund's total assets dropped 7 percent to 73 million euros over the same period.

The French bank follows Union Investment Management GmbH and Frankfurt Trust in stopping redemptions from such funds. Late payments on U.S. subprime mortgages to borrowers with poor credit histories are at the highest since 2002, driving down the value of bonds backed by home loans. The BNP Paribas funds had about 2 billion euros ($2.8 billion) of assets on July 27, including 700 million euros in U.S. subprime mortgages rated AA or higher.

> Should be no surprise when you see what was rated AAA from the rating agencies....

> Sollte keine Überraschung sein wenn man sich ansieht was alles als AAA bewertet wurde....

got Gold...?