{"id":21316,"date":"2016-06-30T19:39:00","date_gmt":"2016-07-01T00:39:00","guid":{"rendered":"http:\/\/olduvai.ca\/?p=21316"},"modified":"2016-06-30T19:39:00","modified_gmt":"2016-07-01T00:39:00","slug":"italy-granted-extraordinary-e150bn-bank-bailout-program-to-prevent-panic-run-on-deposits","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=21316","title":{"rendered":"Italy Granted “Extraordinary ” \u20ac150BN Bank Bailout Program To Prevent “Panic, Run On Deposits”"},"content":{"rendered":"

Italy Granted “Extraordinary ” \u20ac150BN Bank Bailout Program To Prevent “Panic, Run On Deposits”<\/a><\/h3>\n
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\u00a0As we\u00a0noted today<\/a>, the rumors of an Italian bank bailout, which started on\u00a0Monday morning<\/a>, and were promptly shot down by\u00a0Merkel the next day<\/a>, got louder after a Reuters report that the Italian government is considering more creative ways to inject liquidity into Italy’s banks. However that was just an appetizer to a main course, which came later today when as the\u00a0WSJ reported\u00a0<\/a>citing a spokeswoman for the European Union\u2019s executive arm that the\u00a0“European Commission has authorized Italy to use government guarantees to create a precautionary liquidity support program for their banks.”\u00a0\u00a0<\/strong><\/div>\n
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How did this happen so quietly under the table and without Merkel’s blessing? WSJ says that the program was approved under the bloc\u2019s \u201cextraordinary crisis rules for state aid<\/strong>.”<\/p>\n

And here we thought that Italy’s banks are actually doing so very well.\u00a0 Oh wait,\u00a0no we didn’t.<\/a><\/p>\n

As the WSJ notes, the proposed “crisis” plan is the “other leg of an intervention plan considered by the government” namely, the direct capital injection into Italian banks that would add up to \u20ac40 billion in capital to the banking sector”, the one we profiled previously. It is also the plan that Merkel supposedly shut down before it got off the ground. However, Europe had a Plan B up its sleeve.<\/p>\n

What are the details of this latest “crisis” program?<\/p>\n

According to an EU official, the liquidity support program includes up to \u20ac150 billion ($166 billion) in government guarantees. The WSJ adds that the commission spokeswoman declined to comment on the amount of guarantees that were authorized,\u00a0but said that the budget requested by the Italian government had been found to be proportionate. The Italian economy ministry declined to comment<\/strong>.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/section>\n","protected":false},"excerpt":{"rendered":"

Italy Granted “Extraordinary ” \u20ac150BN Bank Bailout Program To Prevent “Panic, Run On Deposits” \u00a0As we\u00a0noted today, the rumors of an Italian bank bailout, which started on\u00a0Monday morning, and were promptly shot down by\u00a0Merkel the next day, got louder after a Reuters report that the Italian government is considering more creative ways to inject liquidity […]<\/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":[6036,2086,3756,279,284,285,1464,683,861,6428],"class_list":["post-21316","post","type-post","status-publish","format-standard","hentry","category-economics","tag-b","tag-bank-run","tag-boe","tag-eu","tag-european-union","tag-eurozone","tag-italy","tag-reuters","tag-wall-street-journal","tag-wsj"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/21316","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=21316"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/21316\/revisions"}],"predecessor-version":[{"id":21317,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/21316\/revisions\/21317"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21316"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21316"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21316"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}