The Italian Bank Run: Monte Paschi Capital Shortfall Surges 75% To €8.8Bn Due To "Rapid Liquidity Deterioration"
While the big news last week was that Italy's third largest bank, Monte Paschi, had been nationalized after JPM destroyed the bank's chances of securing a private-sector rescue, and that Italy would issue up to €20 billion in public debt to fund the bailout of this, and other insolvent Italian banks, it appears there may be more moving parts to the story.
As Reuters reports this afternoon, the ECB has told Monte dei Paschi it needs to plug a capital shortfall of €8.8 billion, 76% greater than the previous €5 billion gap estimated by the bank, and which hole the entire recently failed bank recapitalization was aimed at plugging, the lender said on Monday.
Monte de Paschi has lost more than 14 billion euros since mid 2015 and this chart only show the first half of 2016. So who knows how much they've lost since then.
The dollar vigilante just reported on the EBC's wanting to restrict cash due to the Muslim extremist in the EU which they brought in no questions asked. Clearly they are being used to take freedoms away from Europeans and maybe now financial freedoms as well. Of course the Muslims and cash restrictions could all be staging for a collapse of the banking system. Just in time for the Italian banking crisis to spread into the rest of the EU and then the world.
Are we seeing a repeat of last year when the elite tried but failed to collapse the global economy? We are starting the see the stock market decline just like we saw last December. So does that mean January 2017 is going to be just as chaotic or more than this past January? I would expect it be a bumpy ride the next few weeks until Trump is sworn in as the elite move to get their agenda past before Trump gets in.
Brownie points if you add the source to the ZeroHedge article.
oops, my bad.
Italian banks are in a real mess and could possibly be the trigger to bring a collapse of the EU monetary system as we know it. Great piece and thanks for sharing. Upvoted and shared on Twitter✔ for my followers to read. Stephen
https://twitter.com/StephenPKendal/status/814796733159010304
Disclaimer: I am just a bot trying to be helpful.
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