Europe and America hit by a beetle. It sounds like a joke. Yet, what has happened today has shown that sometimes reality than fiction. Not only for a few hours because Volkswagen has become the largest company in the world by market capitalization (more than the sum of all capitalizations of the major car manufacturers in the world, including GM) in front of the giant black gold even Exxon. So much so that the title has come to weigh on the index for the Eurostoxx 11% and 27% of the German Dax junkie with an increase del'11, 28 per cent. The fantasy became a reality when operating in salt traders have realized it, dismayed that the Vw titles to almost € 1000 (two days ago which were worth 200) had hijacked the world's major banks, already severely weakened by the financial crisis. Renowned institutions of the Old Continent as the French Societe Generale (-12.2%), but also almost impregnable stronghold (never say never, these days) as Morgan Stanley (-23%) and Goldman Sachs (-10%) who had made wrong bets downward trend of the title and then were forced to become covered with a very high price. The culprits are always the same unknown, at the foot of the evolution is in fact the race to become covered hedge funds, triggered by the entries already in recent weeks (the other confirmed Monday) offensive launched by Porsche in the control group of the Beetle. An operation was then put into the field: first, an increase of the stake in VW to 42.6% and then by a further 31.5% earned through the options. The effect was even more so devastating because the share of Volkswagen in securities held by the public and freely traded has fallen to less than 6% (the Land of Lower Saxony, the second largest shareholder after Porsche Vw, controls 20.1%) sparking panic among the funds. The same people who, in recent weeks they had sold short by focusing on a fall in the title Vw, and that in recent sessions have been willing to pay any amount just to cover the their positions. Today, it is said in the operating rooms, some would even erupted structured products created specifically for riding the effect Vw. The result? "It 'was short (or have sold shares in the portfolio without them) more than capital," he says a trader. Someone yesterday tried to stop the massacre urging a halt of trading for shares of the German group. In vain. The Frankfurt Stock Exchange has denied suggestions that tending to show an indication of trade manipulation does not want to withdraw the title from Dax. As for the BaFin, the German Consob, merely to report that it is looking at the development of Frankfurt to find out if there is evidence of insider trading. In other words, anarchy. Operators are appalled. Those Italians point out, at least this time, the differences with the Milan Stock Exchange where short selling have been (although belatedly) banned and a title is suspended upside when one also marks +6%. At the cost of compressing the index and let him wear the black jersey of European stock exchanges.
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