{"id":16646,"date":"2016-01-18T13:04:37","date_gmt":"2016-01-18T18:04:37","guid":{"rendered":"http:\/\/olduvai.ca\/?p=16646"},"modified":"2016-01-18T13:04:37","modified_gmt":"2016-01-18T18:04:37","slug":"italian-banks-collapse-short-sales-banned-as-loan-loss-fears-mount","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=16646","title":{"rendered":"Italian Banks Collapse, Short Sales Banned As Loan Loss Fears Mount"},"content":{"rendered":"<h3 class=\"title\"><a href=\"http:\/\/www.zerohedge.com\/news\/2016-01-18\/italian-banks-collapse-short-sales-banned-loan-loss-fears-mount\" target=\"_blank\">Italian Banks Collapse, Short Sales Banned As Loan Loss Fears Mount<\/a><\/h3>\n<div class=\"node\">\n<div class=\"content\">\n<p><strong>Italian bank stocks are crashing (with BMPS down 40% year-to-date)<\/strong>\u00a0as\u00a0<a href=\"http:\/\/www.reuters.com\/article\/italy-banks-stocks-idUSL8N15228G\">Reuters reports<\/a>\u00a0that investors are growing increasingly nervous about how the sector will cope with lower interest rates and a 200 billion euro ($218 billion)\u00a0<strong>pile of loans that are unlikely to be repaid<\/strong>. The broad banking sector is down 4% with<strong>\u00a0stocks suspended<\/strong>, and in light of this bloodbath, Italian regulators have decided in their wisdom, to\u00a0<strong>ban short-selling of some bank stocks<\/strong>\u00a0(which has driven hedgers into the CDS market, spking BMPS credit risk).<\/p>\n<p><strong>Italy&#8217;s banking index was down over 4 percent\u00a0<\/strong>with shares in several lenders, including the country&#8217;s biggest retail bank Intesa Sanpaolo and the third biggest lender Banca Monte dei Paschi di Siena,<strong>\u00a0suspended from trading after heavy losses.<\/strong><\/p>\n<p>Bloodbath for Italian financials in 2016&#8230;<\/p>\n<p><a href=\"http:\/\/www.zerohedge.com\/sites\/default\/files\/images\/user3303\/imageroot\/2016\/01-overflow\/20160118_ITA1.jpg\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/www.zerohedge.com\/sites\/default\/files\/images\/user3303\/imageroot\/2016\/01-overflow\/20160118_ITA1_0.jpg\" alt=\"\" width=\"600\" height=\"313\" \/><\/a><\/p>\n<p>But don&#8217;t worry:<\/p>\n<ul>\n<li><strong>*MONTE PASCHI CEO CONFIRMS FINANCIAL STABILITY OF BANK<\/strong><\/li>\n<li><strong>*MONTE PASCHI CEO: STOCK DECLINE NOT JUSTIFIED BY FUNDAMENTALS<\/strong><\/li>\n<\/ul>\n<p><a href=\"http:\/\/www.reuters.com\/article\/italy-banks-stocks-idUSL8N15228G\"><em>As Reuters reports,<\/em><\/a><\/p>\n<blockquote>\n<blockquote>\n<div class=\"quote_start\">Investors are growing increasingly nervous about how the sector will cope with lower interest rates and a 200 billion euro ($218 billion) pile of loans that are unlikely to be repaid.<\/div>\n<p>Those concerns are trumping expectations about a wave of consolidation set to sweep the sector, with cooperative banks under pressure to merge following a government reform to reduce the number of lenders.<\/p>\n<p>JP Morgan said this month Italian banks should be avoided because low rates are expected to put pressure on revenues more than in other countries and credit problems limit a recovery in provisions.<\/p>\n<p>Traders have suggested exiting investments that have been particularly favoured, such as Popolare di Milano and Intesa, as the stocks have reached key supports.<\/p>\n<p><strong>&#8220;I think upside on cooperative banks this year is much more limited,&#8221;<\/strong>\u00a0said a London-based equity sales person.<\/p><\/blockquote>\n<\/blockquote>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Italian Banks Collapse, Short Sales Banned As Loan Loss Fears Mount Italian bank stocks are crashing (with BMPS down 40% year-to-date)\u00a0as\u00a0Reuters reports\u00a0that investors are growing increasingly nervous about how the sector will cope with lower interest rates and a 200 billion euro ($218 billion)\u00a0pile of loans that are unlikely to be repaid. The broad banking [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[63,1626,200,6801,1464,7571,539,11793,670,683,11794,4318],"class_list":["post-16646","post","type-post","status-publish","format-standard","hentry","category-economics","tag-banks","tag-cds","tag-default","tag-italian-banks","tag-italy","tag-markit","tag-monte-paschi","tag-naked-short-selling","tag-recovery","tag-reuters","tag-short-interest","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16646","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16646"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16646\/revisions"}],"predecessor-version":[{"id":16647,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16646\/revisions\/16647"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16646"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16646"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16646"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}