The agreement with the tough Padoan Brussels will give a little ‘breathing to Italian banks? – La Gazzetta dello Sport

The Minister Pier Carlo Padoan said in the House yesterday the agreement with Margrethe Vestager, the European Commissioner for Competition, about 200 billion sufferings that weigh on banks’ balance sheets. MEPs listened to an explanation fraught with terms confusing, as “securitization”, “cds”, “npl” …

We have to speak to the strength of this? There is the story of all Efe Bal ‘”Island of the Famous”, it would be better … If
do not shed 201 billion of distressed debt and 150 billion stranded debt, Italian banks They will not have the strength to start to lend money to households and businesses. The discussion with the EU has lasted for a year. It is no coincidence that across the table there’s competition commissioner, this lady Vestager married with three daughters, 47, light eyes and short hair, a pretty face, but what we have seen tough. The discussion with Padoan on Tuesday evening lasted five hours. Competition among banks in Europe, is very strong. So Vestager watched because the Italian solution to the problems did not turn into a state support, ie alteration in the competition regime. We will discuss it again if Brussels has used two weights and two measures, a policy with us, another policy with German banks or Dutch. Today I would say that we would agree to groped to understand.

I would avoid, if possible, those bad words listed at the top. We will see
. Meanwhile, we understand the following. There are people who buy non-performing loans. For example: I lent you a hundred Euros, I do not give back them to me, then I’m going to a third party and say, “I must have a hundred Euros from this kind, but that’s not me them back. Give me 10 euro immediately bought this credit by percent and the ordeal to get back the money you face it. ” This is the basic principle. When we transfer the problem to the banks, the matter is not so simple. Banks must write a budget and in this budget list the loans and whether the claim came into suffering give a value to this suffering. Earlier I wrote the budget giving the credit his full value, then I started to devalue it, let’s say the last time instead of 100 40. If you have written now Ms. Vestager tells me that 40 is not an assessment of the market, but that the assessment of the market is, say, 10, I will have to record a loss of 90, and the loss of 90 could make me go down badly. The law requires me, if the losses exceed two-thirds of the capital, to put fresh money to shareholders or to fail.

How is it possible that one has to have to be content with 10 100 ?
receivables of four small banks go down the drain recently have been written down to 17.6, and the fact has caused all sorts of ironies on smart government ally of speculators, which offers one billion means loans with a nominal value of 8.5 billion. Actually 17.6 could be an optimistic assessment. A few days ago 28 cooperative banks have sold 300 million US fund to Bayview for one tenth of the value. David Serra, the friend of Renzi that more than a year ago has funded 400 million to buy loans, buy to what is known in 10 or at most 15. The Monte dei Paschi has sold a billion credits Epicurus in the bottom of Deutsche figure is so low that he preferred not to disclose. On the other hand this is being done without collateral if Epicurus not be able to get paid will be his business.

The vendor credits can also offer a guarantee to the buyer in case they can not return?
It is, in fact, the topic of discussion Tuesday night between Vestiger and Padoan. Italians had proposed to Europe the creation of bad banks or bad bank that would buy bad loans from banks. Europe has now said no money to create the bad bank would put them in one way or another, the state, the value to be assigned to the suffering would have been certainly political. In the end – this is the deal – Italy will help the system simply to offer a guarantee to banks that want to sell their suffering. This should allow you to negotiate a price a little ‘higher. Padoan said yesterday that this guarantee will be more expensive as time will pass for the sale of impaired loans. The subjects in that field are urged to act quickly.

The state aid, kicked the door, it may fall from the window. Just to charge little guarantee.
No, Vestager demanded an automatic calculation: the value of collateral will be determined by the prices of CDS for the securities of similar value. CDS is an acronym that means “credit default swaps.” In practice, when you buy a share or a bond may insure against a fall in the price of buying cds, which are in turn listed and tradable (it is derived). Analysts, in their initial assessments, estimate that the banks will still be tough. The system imposed by the Vestager force it to merge or be bought by someone bigger.