Bail In Risk – €4 Trillion Banking System In Italy Poses Contagion Risk as Referendum Looms
By: GoldCore
GoldSeek.com
Monday, 28 November 2016
Bail in risk – €4 Trillion Italian banking system at risk as referendum looms Sunday according to Financial Times
Concerns of multiple bank failures – Eight banks at risk of failure and bail ins
Monte dei Paschi di Siena, third largest by assets and mid-sized banks Popolare di Vicenza, Veneto Banca and Carige and four smaller banks
Italy’s banks have €360 billion of problem loans
Contagion poses risks to Unicredit, Italy’s largest bank by assets and only globally significant financial institution
Bail in risks highlight importance of deposit diversification and gold
Imprudent to have all ‘savings eggs’ in ‘bankers basket’
“Up to eight of Italy’s troubled banks risk failing if prime minister Matteo Renzi loses a constitutional referendum next weekend and ensuing market turbulence deters investors from recapitalising them, officials and senior bankers say.
Mr Renzi, who says he will quit if he loses the referendum, had championed a market solution to solve the problems of Italy’s €4 trillion banking system and avoid a vote-losing “resolution” of Italian banks under new EU rules.”
The Rest…HERE
