Monte dei Paschi Troubles May Further Strengthen Demand for Bitcoin
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....
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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....
The economic conditions in Italy and Greece may lead to increased demand for Bitcoin among investors and individuals. The banking system in Italy continues to wade through troubled waters. With no improvements in sight, the government of Italy is considering a bailout package for two major banks, Veneto Banca and Banca Popolare di Vicenza. The package worth 5 billion euros is still awaiting necessary regulatory approvals. The weakening banking sector will be receiving the aid in the form of “precautionary recapitalization” as part of the Eurozone regulations. Apart from the presently....
The European Banking Authority (EBA) published today the results of the 2014 European Union (EU)-wide stress test of 123 banks. The health check was carried out on 123 European banks by the EBA to determine whether they could withstand another financial crisis. The results: over the three-year horizon of the exercise, 24 banks would fail the stress test - in other words, they could not withstand another financial crisis. 14 of these banks are in the Eurozone. The list of 14 includes four Italian banks, two Greek banks, two Belgian banks and two Slovenian banks. Nine Italian banks have....
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....