{"id":28075,"date":"2017-11-17T07:12:02","date_gmt":"2017-11-17T12:12:02","guid":{"rendered":"http:\/\/olduvai.ca\/?p=28075"},"modified":"2017-11-17T07:12:02","modified_gmt":"2017-11-17T12:12:02","slug":"the-next-italian-bank-threatens-to-topple","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=28075","title":{"rendered":"The Next Italian Bank Threatens to Topple"},"content":{"rendered":"
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The Next Italian Bank Threatens to Topple<\/a><\/h3>\n<\/header>\n
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Sharp Dose of Deja Vu for Italy\u2019s Teetering Banks.<\/strong><\/p>\n

In a speech that did little to calm investors\u2019 nerves, Italy\u2019s finance minister said yesterday<\/a> that he was \u201cstrangely optimistic\u201d about Italy\u2019s economic outlook. Senior eurocrats in Brussels are far from convinced. \u201cItaly\u2019s accounts are not improving,\u201d blasted<\/a> European Commission Vice-President Jyrki Katainen at a press conference yesterday.<\/p>\n

The financial situation in Italy, according to Katainen, is due to get worse with Italy\u2019s deficit in 2018 now predicted to be \u20ac3.5 billion more than previously stated by Paolo Gentiloni\u2019s administration in the spring. \u201cThe only thing I can say in my name is that all Italians should know what the real economic situation in Italy is,\u201d he said.<\/p>\n

That real economic situation includes the fragile health of the nation\u2019s banking system which continues to teeter on the edge despite the controversial rescue last summer of Monte dei Paschi di Siena (MPS) and the resolution of the Popolare di Vicenza and Veneto Banca, which left over 40,000 businesses in Italy\u2019s wealthy Veneto region starved of credit.<\/p>\n

It\u2019s pretty clear that investor concerns about the health of Italy\u2019s toxic debt-laden banking system have not been put to rest. Today\u2019s developments will hardly have helped steady nerves after mid-sized lender Carige, with assets of \u20ac26 billion, scuttled a capital increase demanded by European authorities when it failed to get the backing of a banking consortium led by Credit Suisse, Deutsche Bank, and Barclays to underwrite the deal.<\/p>\n

In a statement, Carige said<\/a> it had called a board meeting on Thursday morning to discuss \u201cthe next steps.\u201d The shares of Genoa-based Carige, which had already lost roughly half its value over the past year, were suspended on Milan\u2019s stock exchange. They closed on Wednesday at \u20ac0.17 a piece. The board had fixed a price of \u20ac0.10 euro per share for a capital hike of \u20ac560 million demanded by regulators.<\/p>\n

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

The Next Italian Bank Threatens to Topple Sharp Dose of Deja Vu for Italy\u2019s Teetering Banks. In a speech that did little to calm investors\u2019 nerves, Italy\u2019s finance minister said yesterday that he was \u201cstrangely optimistic\u201d about Italy\u2019s economic outlook. Senior eurocrats in Brussels are far from convinced. \u201cItaly\u2019s accounts are not improving,\u201d blasted European […]<\/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":[12812,195,201,5660,6801,1464,4255],"class_list":["post-28075","post","type-post","status-publish","format-standard","hentry","category-economics","tag-carige","tag-debt","tag-deficit","tag-don-quijones","tag-italian-banks","tag-italy","tag-wolfstreet"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/28075","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=28075"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/28075\/revisions"}],"predecessor-version":[{"id":28076,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/28075\/revisions\/28076"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=28075"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=28075"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=28075"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}