{"id":24219,"date":"2017-06-24T15:28:18","date_gmt":"2017-06-24T20:28:18","guid":{"rendered":"http:\/\/olduvai.ca\/?p=24219"},"modified":"2017-06-24T15:28:18","modified_gmt":"2017-06-24T20:28:18","slug":"two-italian-zombie-banks-toppled-friday-night","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=24219","title":{"rendered":"Two Italian Zombie Banks Toppled Friday Night"},"content":{"rendered":"<header>\n<h3 class=\"entry-title\"><a href=\"http:\/\/wolfstreet.com\/2017\/06\/23\/ecb-shuts-veneto-banca-banca-popolare-di-vicenza-italian-banking-crisis\/\">Two Italian Zombie Banks Toppled Friday Night<\/a><\/h3>\n<\/header>\n<div class=\"entry-content\">\n<p><strong>ECB shuts down Veneto Banca and Banca Popolare di Vicenza.<\/strong><\/p>\n<p>When banks fail and regulators decide to liquidate them, it happens on Friday evening so that there is a weekend to clean up the mess. And this is what happened in Italy \u2013 with two banks!<\/p>\n<p>It\u2019s over for the two banks that have been prominent zombies in the Italian banking crisis: Veneto Banca and Banca Popolare di Vicenza, in northeastern Italy.<\/p>\n<p>The banks have combined assets of \u20ac60 billion, a good part of which are toxic and no one wanted to touch them. They already received a bailout but more would have been required, and given the uncertainty and the messiness of their books, nothing was forthcoming, and the ECB which regulates them lost its patience.<\/p>\n<p>In a tersely worded <a href=\"https:\/\/www.bankingsupervision.europa.eu\/press\/pr\/date\/2017\/html\/ssm.pr170623.en.html\" target=\"_blank\" rel=\"noopener\">statement<\/a>, the ECB\u2019s office of Banking Supervision ordered the banks to be wound up because they \u201cwere failing or likely to fail as the two banks repeatedly breached supervisory capital requirements.\u201d<\/p>\n<p>\u201cFailing or likely to fail\u201d is the key phrase that banking supervisors use for banks that \u201cshould be put in resolution or wound up under normal insolvency proceedings,\u201d the statement said.\u00a0This is the first Italian bank liquidation under Europe\u2019s new Single Resolution Mechanism Regulation. The ECB explained:<\/p>\n<blockquote><p>The ECB had given the banks time to present capital plans, but the banks had been unable to offer credible solutions going forward.<\/p>\n<p>Consequently, the ECB deemed that both banks were failing or likely to fail and duly informed the Single Resolution Board (SRB), which concluded that the conditions for a resolution action in relation to the two banks had not been met. The banks will be wound up under Italian insolvency procedures.<\/p><\/blockquote>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Two Italian Zombie Banks Toppled Friday Night ECB shuts down Veneto Banca and Banca Popolare di Vicenza. When banks fail and regulators decide to liquidate them, it happens on Friday evening so that there is a weekend to clean up the mess. And this is what happened in Italy \u2013 with two banks! It\u2019s over [&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":[61,63,233,282,1464,15423,14135,4254,6118,8815],"class_list":["post-24219","post","type-post","status-publish","format-standard","hentry","category-economics","tag-banking","tag-banks","tag-ecb","tag-european-central-bank","tag-italy","tag-popolare-di-vicenza","tag-veneto-banca","tag-wolf-richter","tag-wolf-street","tag-zombie-banks"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/24219","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=24219"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/24219\/revisions"}],"predecessor-version":[{"id":24220,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/24219\/revisions\/24220"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=24219"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=24219"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=24219"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}