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Bail in risk – €4 Trillion Italian banking system at risk as
referendum looms Sunday according to Financial Times
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Concerns of multiple bank failures – Eight banks at
risk of failure and bail ins
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Monte dei Paschi di Siena, third largest by assets and
mid-sized banks Popolare di Vicenza, Veneto Banca and Carige and four smaller
banks
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Italy’s banks have €360 billion of problem loans
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Contagion poses risks to Unicredit, Italy’s largest bank
by assets and only globally significant financial institution
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Bail in risks highlight importance of deposit diversification
and gold
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Imprudent to have all ‘savings eggs’ in ‘bankers basket’
(Copyright The Financial Times Limited 2016)
“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.”
Financial Times
The Italian banking system looks vulnerable to collapse whether the
referendum is passed in Italy or not. Were the referendum passed, it may
allow senior Italian and international bankers to further ‘kick the can down
the road’ and delay the inevitable.
Financial and economic contagion in the EU is the likely outcome of the
financial and political mess that both Italy and other EU states find
themselves in. The question is increasingly not if, but when.
and depositors need to begin preparing by diversifying and not
have all their ‘saving eggs’ in the ‘bankers basket’.
An important way to protect investments and savings is to be diversified
and have a healthy allocation to physical gold – both in one’s possession and
in secure
storage, in the safest vaults in the world.
Read full Financial Times article on
Italian Prime Minister Matteo Renzi addresses supporters ahead of the
constitutional reform referendum this Sunday (AFP PHOTO/ANDREAS SOLARO)
Gold Prices (LBMA AM)
28 Nov: USD 1,189.10, GBP 956.51 & EUR 1,117.99 per ounce
25 Nov: USD 1,187.50, GBP 953.30 & EUR 1,121.83 per ounce
24 Nov: USD 1,187.25, GBP 953.60 & EUR 1,125.04 per ounce
23 Nov: USD 1,213.25, GBP 980.00 & EUR 1,143.00 per ounce
22 Nov: USD 1,217.55, GBP 978.91 & EUR 1,144.98 per ounce
21 Nov: USD 1,214.95, GBP 984.72 & EUR 1,143.39 per ounce
18 Nov: USD 1,206.10, GBP 971.15 & EUR 1,135.54 per ounce
Silver Prices (LBMA)
28 Nov: USD 16.68, GBP 13.45 & EUR 15.73 per ounce
25 Nov: USD 16.47, GBP 13.21 & EUR 15.55 per ounce
24 Nov: USD 16.31, GBP 13.09 & EUR 15.43 per ounce
23 Nov: USD 16.56, GBP 13.36 & EUR 15.59 per ounce
22 Nov: USD 16.76, GBP 13.46 & EUR 15.77 per ounce
21 Nov: USD 16.68, GBP 13.47 & EUR 15.69 per ounce
18 Nov: USD 16.51, GBP 13.30 & EUR 15.54 per ounce
