“I am not in favor of a softening of the European rules” in the post Brexit, “but for the ‘intelligence application of these rules. I challenge anyone to be for the stupidity “. And again: “The concern of the Italian Government is to take the necessary measures to restore confidence throughout the Italian banking system. I believe it is our duty to be solidarity . ” He said the French Minister of Finance Michel Sapin , speaking before the ‘ Eurogroup called to discuss the release of the United Kingdom from the EU but during which will also be discussed, inevitably, the Italian request to intervene with public funds to recapitalize Italian banks that have the need. How it could happen to the Monte dei Paschi di Siena after the outcome of the stress test European Banking Authority, expected on July 29. The novelty, the week will also meet the Ecofin, though, came from Berlin: Sunday, chief economist of Deutsche Bank has recognized that “Europe has urgent need bailout fund from 150 billion of euro to recapitalize its
” Europe is extremely ill and must begin to deal with its problems very quickly, otherwise there may be a crash , “said David Folkerts-Landau , a member of the executive committee of the German institute , in an appearance Sunday on Welt am Sonntag . “I am not a prophet of doom, I am a realist.” According Folkerts-Landau, there is no horizon “a second financial crisis as in 2008,” but “we face a slow, long downward spiral .”
the German bank, which in 2016 lost 48% on the Frankfurt Stock Exchange, is burdened with 30 billion euro of securities derivatives high risk. It is a different issue from that of the Italian banking sector, whose weight consists of 360 billion impaired loans of which 200 Gross NPLs , but it is a weakness that after the Brexit is back to unleash speculation for its securities. Hence the request, which looks like an original Italian assists the wish that the European directive on the bail in at this stage is Suspended to prevent to bear the losses are also subordinated bondholders . In the case of MPS There are 60 thousand investors with riskier bond portfolio to a value of 5 billion Euros.
Also according to the Financial Times , which focuses once again on the Italian institutions, “time is running out” to find a solution, but the financial daily writes that “discussions between Italy and EU officials on a bailout for its weak banks have mired . ” He repeats, as it did last week, that if small investors who bought subordinated bonds will lose their money because of the application of the bail will be at risk in the same estate of the government.
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