{"id":19758,"date":"2016-04-10T19:35:21","date_gmt":"2016-04-11T00:35:21","guid":{"rendered":"http:\/\/olduvai.ca\/?p=19758"},"modified":"2016-04-10T19:35:48","modified_gmt":"2016-04-11T00:35:48","slug":"italy-seeks-last-resort-bailout-fund-to-ringfence-troubled-banks-meeting-monday","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=19758","title":{"rendered":"Italy Seeks “Last Resort” Bailout Fund To “Ringfence” Troubled Banks, Meeting Monday"},"content":{"rendered":"

Italy Seeks “Last Resort” Bailout Fund To “Ringfence” Troubled Banks, Meeting Monday<\/a><\/h3>\n
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Italy\u2019s finance minister, Pier Carlo Padoan, wants to \u201cringfence\u201d its troubled banks.<\/p>\n

Padoan called a meeting of the executives of Italy\u2019s troubled banks in Rome on Monday. The banks allegedly will come up with a \u201cLast Resort\u201d bailout fund.<\/p>\n

Last resort or first resort, is there a difference at this point in time?<\/p>\n

Please consider\u00a0Italy Pushes for Bank Rescue Fund<\/a>. I highlight the key buzzwords and phrases italics.<\/p>\n

Finance minister Pier Carlo Padoan has called a meeting in Rome on Monday with executives from Italy\u2019s largest financial institutions to agree final details of a \u201clast resort<\/em>\u201d bailout plan.<\/p>\n

Yet on the eve of that gathering, concerns remain as to whether the plan will be sufficient to\u00a0ringfence<\/em>\u00a0the weakest of Italy\u2019s large banks, Monte dei Paschi di Siena, from\u00a0contagion<\/em>, according to people involved in the talks.<\/p>\n

Italian bank shares have lost almost half their value so far this year amid investor worries over a\u00a0\u20ac360bn pile of non-performing loans<\/em>\u00a0\u2014 equivalent to about a fifth of GDP. Lenders\u2019 profitability has been hit by a crippling three-year recession.<\/p>\n

The plan being worked on, which could be officially announced as soon as Monday evening, recalls the\u00a0Sareb bad bank<\/em>\u00a0created in 2012 by the Spanish government to deal with financial crisis in its smaller cajas banks, say people involved.<\/p>\n

Although the details remain under discussion, it foresees the establishment of a private vehicle that will include upwards of \u20ac5bn in\u00a0equity contributions \u2014 mostly from Italy\u2019s banks, insurers and asset managers\u00a0<\/em>\u2014 and then a larger debt component. The fund will then mop up shares in distressed lenders.<\/p>\n

A second vehicle will seek to buy non-performing loans at market prices.<\/p>\n

\u201cIt is a\u00a0backstop fund<\/em>,\u201d said one person involved in the talks.<\/p><\/blockquote>\n

…click on the above link to read the rest of the article…<\/p>\n

\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Italy Seeks “Last Resort” Bailout Fund To “Ringfence” Troubled Banks, Meeting Monday Italy\u2019s finance minister, Pier Carlo Padoan, wants to \u201cringfence\u201d its troubled banks. Padoan called a meeting of the executives of Italy\u2019s troubled banks in Rome on Monday. The banks allegedly will come up with a \u201cLast Resort\u201d bailout fund. Last resort or first […]<\/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":[3855,3325,285,291,1464,6654,5415,13390,539,6559,1264,802],"class_list":["post-19758","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bad-bank","tag-creditors","tag-eurozone","tag-fail","tag-italy","tag-lehman","tag-lehman-brothers","tag-mishtalk","tag-monte-paschi","tag-non-performing-loans","tag-recession","tag-too-big-to-fail"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/19758","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=19758"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/19758\/revisions"}],"predecessor-version":[{"id":19760,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/19758\/revisions\/19760"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19758"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19758"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19758"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}