Italian Banking Sector Heads Toward US$21bn Bailout
It is evident Italy’s banking sector is on the brink of collapse, and a crisis is unavoidable unless new capital enters the market. Italy’s financial situation is getting out of hand as of late. With virtually ever bank in the country struggling with bad debt, finding a solution is not easy. For now, it appears the banks will need US$21bn in fresh capital. The current plans it to raise that money through a bailout. A very precarious situation that highlights how fragile the global economy is at this time. Adding another layer to Italy’s mountain of debt does not make much sense on paper.....
Related News
Monte dei Paschi, the oldest banking institution in Italy may soon be rescued by the government. It can potentially drive investors towards Bitcoin. The cryptocurrency community is elated to see the price of Bitcoin hit the roof. But the scene isn’t so rosy for many Italian investors who decided to trust the country’s fiat economy and invest in one of the country’s leading banking institutions— Monte dei Paschi. Italy has been going through a rough patch since the past few years. The country’s failing economy has gotten much worse lately and the recent referendum for the constitutional....
It is expected more European banks will follow suit of Italy’s oldest bank and raise new capital. This means other countries will have to inject funds into the regions which are in financial trouble, and weaken their position at the same time. The Italian banking crisis has been on the radar of many people as of late. Any major issues stemming forth from this debacle could send the European economy back into recession. For now, the oldest bank in the country has received a 5bn EUR bailout package. This decision was made after the recent stress test conducted by all banks around the world,....
Italy’s banking system is on the verge of a meltdown with the oldest bank in the world falling short of 3 billion euros. Monte Dei Paschi, Italy’s third largest bank is in eye of the storm, as its shares fell by 12% on Wednesday ahead of a deadline for recapitalisation. Italy’s banking system is on the verge of a meltdown with the oldest bank in the world falling short of 3 billion euros. Other big names, like UniCredit, are in equally bad shape. It was uncovered by Wells Fargo that nearly 15% of all loans held by Italian banks could be at risk of default. Though the Italian parliament has....
While Bitcoin is worth more today than at any time in its history, with the exception of 11 days, in the banking sector it’s business as usual - money lost, uncertainty and bailouts. The past week has seen the nationalization of two banks by governments, one of which is the oldest bank in the world. Several more have been fined for interest rate fixing, with JPMorgan Chase obliged to pay almost $33 mln to Switzerland. Italy forecasts domino effect. “Italy is doing now what other countries have done many years ago to sustain their banking system,” Jacopo Ceccatelli, CEO of a Milan broker....
According to chief economist of Deutsche Bank, European banks urgently need a $166 billion bailout. David Folkerts-Landau, Deutsche-Bank AG’s chief economist, says EU banks desperately need significant recapitalization efforts, Italian banks in particular. “Europe is extremely sick and must start dealing with its problems extremely quickly, or else there may be an accident. I’m no doomsday prophet, I am a realist.” Of particular concern are Italian banks, whose estimated €360 billion in bad loans could cause a bank failure and ripple effect, affecting the rest of the EU. While....