Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
Story Views
Now:
Last hour:
Last 24 hours:
Total:

Italian Banks Crash Despite EU Stress Tests

% of readers think this story is Fact. Add your two cents.




For a few minutes at the open, mainstream business media persuaded itself that the EU stress tests had proved that everything was fine in Europe’s banking system again. But very quickly, things went south with Italian banks – the center of the storm – reversing gains and then extending losses with Unicredit now down 8% (after being up 4%).

As Citi’s Christian Schulz notes, “The 2016 stress test is unlikely to fully restore investors’ trust in the eurozone banking system, in our view.”

And it seems he is right…

Monte Paschi is holding gains amid its massively dilutive capital raise, but this is noise across the stock’s bid-offer.
Finally, we offer Macro-Man’s sarcastic take on the EU stress tests as evidence of why EU banking stocks are sliding…

1) In the latest European bank stress test, Monte dei Paschi ended up with Tier 1 capital of -2.4% in the most stressed scenario

2) Although there was no official pass or fail awards, a negative capital ratio is pretty clearly an epic fail

3) Having sold €8 billion worth of stock since 2014, BMPS proposes to sell another €5 billion before year end…

4) …providing they can also unload €9.2 billion worth of NPLsturds off of their balance sheet first

5) Since the imposition of negative rates in Europe (illustrated by the arrow), here is what the SX7E index has done

6) So naturally, the stress tests did not measure the impact of more negative rates, only a move higher in rates

7) This is the equivalent of measuring the impact of a dog whistle on a deaf person

8) More European banks failed the Fed’s stress test (DB and Santander) than the EBA version (albeit, as noted, there were not official pass/fail grades this time around.)

9) If you can believe it, DB scored half a percent better on the stress test than Barclays

10) If you were wondering, by far the highest score on the EBA stress test was achieved by NRW.Bank in Germany. In a possibly related coincidence, their website looks like it’s a school project for a middling web design student, though its career portal does offer applicants the opportunity to “venture into the fascinating world of finance!

Credit to Zero Hedge

http://nunezreport.blogspot.com/


Source: http://nunezreport.blogspot.com/2016/08/italian-banks-crash-despite-eu-stress.html


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!


Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST


Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)

Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen!

Nascent Iodine - Promotes detoxification, mental focus and thyroid health.

Smart Meter Cover -  Reduces Smart Meter radiation by 96%! (See Video).

Report abuse

    Comments

    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    MOST RECENT
    Load more ...

    SignUp

    Login

    Newsletter

    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.