Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
by Bjinse on Mon Jun 26th, 2017 at 08:53:22 PM EST
Liquidation of Italian banks shows limits of banking resolution rules [?!]
The operation escaped the direct intervention of the Single Resolution Board, as it did not believe the public interest was at stake. The board ruled out that the financial stability in Europe would be affected by the collapse of these two banks that jointly hold €55 billion in assets.
As part of the liquidation process, all shareholders and junior bondholder assets were wound down but senior creditors [ie. EU CBs] were saved. The Commission accepted Italy's argument that extending further the losses could affect the financial stability and the regional economy of the Northern region. Without public support, EU officials argued that the shock would have been more significant, as all branches would be closed on Monday, all jobs lost and credit lines frozen.

As part of the deal, the two banks will materially disappear- although part of their structure will remain. Around 60% of the branches will be closed and 40% of the staff fired.

well, alrighty then.
The use of public money contrasted with the recent restructuring of Banco Popular, the first resolution led by SRB on 7 June.


< wipes tears>

:: Bloomberg 'stress testing,' yesterday
Italy Bank Deal Makes Germans Wary of Macron's Euro Agenda
(DISCLAIMER: Interpretive 'Macron Euro Agenda' dance still developing ...)

Diversity is the key to economic and political evolution.

by Cat on Tue Jun 27th, 2017 at 10:17:26 PM EST
[ Parent ]
by Cat on Tue Jun 27th, 2017 at 10:49:04 PM EST
[ Parent ]
Italy to Nationalize Bank, Shed $32.5B in Bad Loans
The Italian government will inject 5.4 billion euros into the bank, giving it a 70-percent stake, as part of a total boost of 8.1 billion euros. Under the deal, the government must exit within five years.

5 July 2017

Diversity is the key to economic and political evolution.
by Cat on Thu Jul 6th, 2017 at 01:48:47 AM EST
[ Parent ]


Occasional Series