Italian Banks Swoon Lower After the ECB Rejects Monte Paschi’s Request for More Time

Monte Paschi is halted and limit down in Italy after the ECB rejected their request for more time to raise capital, which is leading others to believe the Italian government will have to bail them out.

Italy’s third largest lender had requested an additional 3 weeks to wrap up a $5.3b capital raise. But the ECB told them to fuck off.

Italy can’t afford to let the bank fail, especially since the rest of their banking system is in shambles as well. Look for a bailout soon.

Other banks in Italy are trading down hard in sympathy.

Banco Popolare -4.3%

Monte Paschi -7.2%

Mediobanca -4.1%

Unicredit -5.8%

The FTSE MIB is lower by 1.2%, which isn’t too bad considering their entire banking system is one bailout closer to complete collapse.

 

 

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