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First BREXIT now the next crisis .. ITALIAN BANKS are in BIG trouble

robut

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Brexit Exposes Eurozone

the ITALIAN economy never fully recovered and bank efforts to recover their collateral were frustrated by a weak judicial system. Instead, undercapitalized banks were reluctant to lend and overextended companies unwilling to borrow, leading to a prolonged slump.

Now Rome must clean up this mess under far more challenging circumstances. Under new EU rules that came into force in January, no public money can be used to support failed banks until private-sector creditors accounting for 8% of the bank’s liabilities have been bailed in.

If Italy is forced to stick to the rules, it could face multiple bank failures, which could mean heavy losses for many ordinary retail savers, who own up to €250 billion of bank bonds.
No body is discussing this here .. not that I could see anyway.

This one looks nasty as, according to FT "Renzi is ready to defy Brussels and bail out Italy’s troubled banks".

According to the WSJ - "In Italy, 17% of banks’ loans are sour, nearly 10 times the level in the U.S."

It seems Italy policy makers let things drift for years, never deal with the ailing banking system like others did a few years back.

So its seems .. hold on to your hat .. ITALY is too big to Bail out for EU.

Brexit + Italy banks = EU end?
 


Half Nelson

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"If Italy is forced to stick to the rules.."

Where banks and bondholders are concerned we know the rules will be bent and twisted so that the ordinary worker is left to carry the burden.

It's probably the only thing the EU is very good at.
 

Fractional Reserve

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They have bailing in place now but that won't be enough so more fun and games

"If Italy is forced to stick to the rules.."

Where banks and bondholders are concerned we know the rules will be bent and twisted so that the ordinary worker is left to carry the burden.

It's probably the only thing the EU is very good at.
 

cunnyfunt

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Apr 16, 2015
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"If Italy is forced to stick to the rules.."

Where banks and bondholders are concerned we know the rules will be bent and twisted so that the ordinary worker is left to carry the burden.

It's probably the only thing the EU is very good at.
Bring on Itxit and take this baby down! :rolleyes:
 

Cato

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Renzi is saying he is going pump public funds in , the German and Brussels are not happy , they are breaking the new rules
Renzi will not simply stand by and see his country's banking system burnt to the ground for the sake of obeying EU rules. The Italian government will just have to tell Brussels and Berlin that they'll see them in court, which will take years and by which time a fudge will have been achieved. The Five-Star movement are growing in electoral strength and there must be a fear that they'll make it into government next time.
 

Dame_Enda

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Theres a movement called Italeave seeking Italian exit from the EU.
 

FunkyBoogaloo

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Sure it'll be grand. There's one Italian banker with apparently massive bazookas who'll save the whole shebang... I hear he's quite the Super!


Besides... Italy's one of the Big Boys in the club. They usually break the rules and then get together with the other big boy club members and change them.
 
Last edited:

Toland

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Theres a movement called Italeave seeking Italian exit from the EU.
They obviously speak beautiful English.

"Ituscita" would be my suggestion. Or just "Uscita" perhaps. After all, it means Exit in Italian.

I'm fascinated by the delight being shown at the prospect of the Italian people being put through decades of hardship to please them.
 

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