2 Italian Banks Failed last Friday night

[midas]

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The banks have combined assets of €60 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.

In early June, the two banks were instructed by the European Commission to raise an additional €1.25 billion in private capital. No one bit. Italy’s government then tried to persuade the European Commission and the ECB to water down the requirement to €600-800 million, and it urged Italian banks to chip in to the bank rescue fund.

A new era has begun in Europe. And it started in Spain. Many Banco Popular investors were wiped out.

 

 

http://wolfstreet.com/2017/06/23/ecb-shuts-veneto-banca-banca-popolare-di-vicenza-italian-banking-crisis/

[observer90210]

I would never never trust a penny to deposit in either a Spanish bank, an Italian bank, a Greek bank or a Portugese bank...despite the 100'000 € deposit guarantee by  the European Union in case of bankrupcy of the bank....neither will I ever trust any US bank .....no bank in the workd can beat the Swiss banks (or a few banks in France) for the big chunk of your cash....sorry...no offence here but reality overtakes fiction often, helas.

 

Edited June 25, 2017 by observer90210

[BuaBS]

GOOD ! Let's hope those banks are the snowball that starts the big avalanche.

[swissie]

4 hours ago, BuaBS said:

GOOD ! Let's hope those banks are the snowball that starts the big avalanche.

Took a lot of effort to "save" Greece. Greece, not even being a "major player".

If Italy should turn "sour", and Italy being a "major player", there would not be enough ammunition left to "save" Italy.
In such a case, yes, avalanche coming!

Hard to stay out of the pathway of the avalanche, as long as one's monthly Pension Money comes from Europe in form of Euros.
A massive devaluation of the Euro would be inevitable. Turning S/E Asian currencies into "hard-currencies" versus the Euro. Making residency in those S/E Asian countries for Farangs unattracive, if not impossible.

So, as far as the "avalanche" is concerned, let's be careful what we wish for. It might happen! But with negative effects, as far as the "Farang-Community" in S/E Asia is concerned.
Cheers.  

[BuaBS]

@ swissie : You have had years to buy cheap gold.  When the avalanche comes , it will be your own fault to get buried under the snow.

But don't worry , the ECB may not bail out these banks , but will certainly "print" trillions of euro's to stop the implosion of the euro.

[allane]

Bloomberg is reporting that the Italian government held an emergency meeting yesterday, and is providing funds so that the two banks can open today. It was also mentioned that they are going to be absorbed by Intesa Sanpaolo.

[BuaBS]

Where are those funds coming from ? Probably loans from the ECB or gov bonds bought by the ECB futher down the line.

[midas]

On 6/26/2017 at 8:08 AM, BuaBS said:

Where are those funds coming from ? Probably loans from the ECB or gov bonds bought by the ECB futher down the line.

Italy’s newest bank bailout cost as much as its annual defense budget

 

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Two more Italian banks failed over the weekend– Banco Popolare di Vicenza and Veneto Banca.

(In other news, the sky is blue.)

The Italian Prime Minister himself stated that depositors’ funds were at risk, so the government stepped in with a bailout and guarantee package that could cost taxpayers as much as 17 billion euros.

That’s a lot of money in Italy– around 1% of GDP. In fact it’s basically as much as the 17.1 billion euros they spent on national defense last year (according to an estimate by Italian think tank IAI).

You don’t have to have a PhD in economics to figure out that NO government can afford to spend its entire defense budget every time a couple of medium-sized banks need a bailout.

That goes especially for Italy, whose public debt level is already 132% of GDP… and rising. They simply don’t have the money.

 

https://www.sovereignman.com/trends/italys-newest-bank-bailout-cost-as-much-as-its-annual-defense-budget-22088/

[topt]

On ‎26‎/‎06‎/‎2017 at 8:01 AM, allane said:

Bloomberg is reporting that the Italian government held an emergency meeting yesterday, and is providing funds so that the two banks can open today. It was also mentioned that they are going to be absorbed by Intesa Sanpaolo.

Also from another source -

"Equity shareholders (EUR4bn) and junior bondholders (EUR1.2bn) will be wiped-out, in line with the burden-sharing principle"

 

Not sure if that is extra to or included in the potential 17 billion mentioned?

[speedtripler]

On 2017-6-26 at 7:32 AM, BuaBS said:

@ swissie : You have had years to buy cheap gold.  When the avalanche comes , it will be your own fault to get buried under the snow.

But don't worry , the ECB may not bail out these banks , but will certainly "print" trillions of euro's to stop the implosion of the euro.

 

Has been coming for awhile, bitcoin  and gold is what I trust when the banks and governments start embezzlement of citizens funds... 

[Naam]

On 6/25/2017 at 5:36 PM, midas said:

The banks have combined assets of €60 billion, a good part of which are toxic and no one wanted to touch them.

if "toxic" the expression "assets" does not apply

[midas]

1 hour ago, Naam said:

if "toxic" the expression "assets" does not apply

9 years ago I remember TV poster " Flying " used to report almost weekly in the infamous " Financial Crisis " thread on the regular number of bank failures that were happening in USA .

And here we are all these years later and they are still happening.

What " recovery " ?

[Naam]

8 minutes ago, midas said:

9 years ago I remember TV poster " Flying " used to report almost weekly in the infamous " Financial Crisis " thread on the regular number of bank failures that were happening in USA .

And here we are all these years later and they are still happening.

without any negative effect for the retirees who live happily ever after in the Land Of Smiles.

[midas]

8 minutes ago, Naam said:

without any negative effect for the retirees who live happily ever after in the Land Of Smiles.

Yes you could get away with that kind of attitude provided you didn't have children otherwise you would have to try and explain to them why everyone was so willing to brush all the criminality under the carpet - remember QE " extend and pretend "?

[midas]

On 6/28/2017 at 1:30 PM, Naam said:

without any negative effect for the retirees who live happily ever after in the Land Of Smiles.

 

Global debt has now reached a new all-time record high of 217 trillion dollars…

 

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Never before in human history has our world been so saturated with debt.

Let me try to put this into perspective.  If you could somehow borrow a million dollars today and obligate your children to pay it off for you, would you do it?

Maybe if you really hate your children you would, but most loving parents would never do such a thing.

But that is precisely what we are doing on a national level.

 

 

http://theeconomiccollapseblog.com/archives/the-world-is-now-217000000000000-in-debt-and-the-global-elite-like-it-that-way