World’s oldest bank faces uphill battle with EU trying for another bailout

CmlZV23WEAActt7

https://www.rt.com/business/351232-italy-oldest-bank-bailout/

Italy’s third-largest and the world’ oldest bank, Monte dei Paschi de Siena, is on the point of collapse unless it receives state support. Its failure could spark a banking crisis in Europe, but EU rules forbid bank bailouts using public funds.

Alarm bells have gone off ahead of the results of European stress tests, due to be released at the end of July that will reportedly reveal Italian capital needs. Because of the concerns investors are staying away from the recapitalization of the country’s banks.

According to the IMF, Banca Monte dei Paschi di Siena has over $400 billion (€360 billion) of non-performing loans. Experts expect the bank to become the worst performer with the risk of its failure likely to shake the Italian banking system.

The bank has already been bailed out twice, but is likely to need a third multibillion euro cash injection from the government.

EU regulations ban member states from using public money to support failed banks. If Italy follows the rules imposed by Brussels, several national banks will become insolvent.

The collapse of Italy’s oldest bank is likely to jeopardize the political fortunes of Italy’s Prime Minister Matteo Renzi, who is now facing the hardest challenge of his tenure.

The post-Brexit turmoil, sparked a massive selloff of banks stocks in Europe, and left Monte dei Paschi trading at less than one-tenth of book value.

https://en.wikipedia.org/wiki/Banca_Monte_dei_Paschi_di_Siena

Key people

https://en.wikipedia.org/wiki/Massimo_Tononi

Tononi was born on 22 August 1964 in Trento, Italy. He is the son of politician Giorgio Tononi and the brother of neuroscientist Giulio Tononi. He graduated with a degree in economics from Bocconi University in 1988. Tononi worked in the Investment Banking Division of Goldman Sachs, London from June 1988 to May 1993.

https://en.wikipedia.org/wiki/Fabrizio_Viola

———-

the oldest bank in the world..and its dying..

links to goldman sachs of course as noted above..

” Its failure could spark a banking crisis in Europe, but EU rules forbid bank bailouts using public funds.”

really?..but depositors deposits would be ok to plunder?

401

~ by seeker401 on July 21, 2016.

3 Responses to “World’s oldest bank faces uphill battle with EU trying for another bailout”

  1. Reblogged this on Scoop Feed.

  2. Reblogged this on World Peace Forum.

  3. Italy’s troubled Monte dei Paschi bank faces billions in legal claims

    https://www.rt.com/business/368449-italian-bank-legal-claims/

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
%d bloggers like this: