It Begins: Monte Paschi “Bails In” Bondholders, Halts $650 Million In Coupon Payments

Monday, September 23, 2013
By Paul Martin

by Tyler Durden
ZeroHedge.com
09/23/2013

Recall that three weeks ago we warned that “Monti Paschi Faces Bail-In As Capital Needs Point To Nationalization” although we left open the question of “who will get the haircut including senior bondholders and depositors…. given the small size of sub-debt in the capital structures.” Today, as many expected on the day following the German elections, the dominos are finally starting to wobble, and as we predicted, Monte Paschi, Italy’s oldest and according to many, most insolvent bank, quietly commenced a bondholder “bail in” after it said that it suspended interest payments on three hybrid notes following demands by European authorities that bondholders contribute to the restructuring of the bailed out Italian lender. Remember what Diesel-BOOM said about Cyprus - that it is a template? He wasn’t joking.

The Rest…HERE

Leave a Reply

Support Revolution Radio