{"id":21330,"date":"2016-07-01T10:44:37","date_gmt":"2016-07-01T15:44:37","guid":{"rendered":"http:\/\/olduvai.ca\/?p=21330"},"modified":"2016-07-01T10:44:37","modified_gmt":"2016-07-01T15:44:37","slug":"italy-just-bailed-out-another-failed-bank-may-use-pension-funds-for-future-bank-rescues","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=21330","title":{"rendered":"Italy Just Bailed Out Another Failed Bank, May Use Pension Funds For Future Bank Rescues"},"content":{"rendered":"

Italy Just Bailed Out Another Failed Bank, May Use Pension Funds For Future Bank Rescues<\/a><\/h3>\n
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Despite – or perhaps due to – Italy’s failed attempt to slide a state-funded \u20ac40 billion recapitalization attempt past Angela Merkel while blaming it on Brexit, and coupled with a bailout proposal to provide \u20ac150 billion in liquidity to insolvent banks, overnight we got yet another confirmation that the biggest risk factor for Europe is not Brexit but Italy, where yet another failed bank was bailed out. As the\u00a0FT reports<\/a>\u00a0overnight, Atlante, Italy’s privately backed \u20ac5bn bank bailout fund which was created in April to stem the threat of contagion from struggling lenders and whose assets turned out to be woefully inadequate,\u00a0took control of Veneto Banca after a \u20ac1bn capital increase demanded by EU bank regulators attracted zero interest.\u00a0<\/strong><\/p>\n

This is good news for Veneto Banco and bad news for all other insolvent banks, because the fund, known as Atlas in English, was intended to hold up the sky for Italian banks. Instead it is now practically out of funds, having depleted more than half of its war chest after taking control of Popolare di Vicenza, another regional bank, last month.<\/p>\n

That has left little in reserve to tackle about \u20ac200bn in non-performing loans run up during Italy\u2019s three-year recession, of which \u20ac85bn have not yet been written down. Bad loans are weighing on bank lending and crimping an already weak recovery.<\/p>\n

As\u00a0the FT adds<\/a>, Lorenzo Codogno, an economist and former treasury director-general, said: \u201cItalian [and to a lesser extent European] banks have entered into a negative loop where they cannot ask for private capital as there is no investor appetite and without capital they cannot provision or write off NPLs<\/strong>.\u201d<\/p>\n

This means the only hope is public-funded bailouts, however that is banned by eurozone regulations.<\/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 Just Bailed Out Another Failed Bank, May Use Pension Funds For Future Bank Rescues Despite – or perhaps due to – Italy’s failed attempt to slide a state-funded \u20ac40 billion recapitalization attempt past Angela Merkel while blaming it on Brexit, and coupled with a bailout proposal to provide \u20ac150 billion in liquidity to insolvent […]<\/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":[14136,2015,63,5582,279,281,284,14137,7812,1464,14134,14135,4318],"class_list":["post-21330","post","type-post","status-publish","format-standard","hentry","category-economics","tag-atlante","tag-bailout","tag-banks","tag-brexit","tag-eu","tag-europe","tag-european-union","tag-failed-bank","tag-ft","tag-italy","tag-recapitalization","tag-veneto-banca","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/21330","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=21330"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/21330\/revisions"}],"predecessor-version":[{"id":21331,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/21330\/revisions\/21331"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21330"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21330"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21330"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}