Comments are now closed due to spamming and personal attacks.

Twitter: https://twitter.com/huffpoclub

Breaking News

First Cyprus, Next Italy? Italy’s Monte dei Paschi Bank Reports a $4.1B Loss, Bringing New Fears About Europe Finances By Fox News

Posted on Monday, 1st April 2013 @ 09:51 AM by Text Size A | A | A

Customers of an Italian bank have seen deposits fall by “a few billion euros” after a scandal in February, the bank announced Saturday.

According to Reuters, Monte dei Paschi bank reported a yearly loss of 3.2 billion euros ($4.1 billion) – a  higher-than-expected net loss for 2012 – after loss-making derivatives trades at the lender amounting to 730 million euros.  Bad loans also contributed to the loss.

The bank’s chief financial officer said after the earnings were released on Thursday that it was “quick in recovering ground in March” on the lost deposits in February.

The figures highlight the scale of the problems at Italy’s third-biggest lender, which received a 4 billion euro ($5.1 billion) state bailout last month, according to Reuters.

The news of Monte dei Paschi comes as a deal to rescue Cyprus banks from financial collapse has renewed fears about Europe’s shaky financial system.

Many banks across Europe have been struggling for more than three years as losses on government bonds and bad loans piled up. Some governments, meanwhile, have taken on more debt trying to prop up their lenders to the point where they have needed bailing out themselves.

In Cyprus’s case, its banking sector became much bigger than the country’s government could afford to rescue — seven times the size of the country’s economy. When the banks were hit by large losses and Cyprus could not afford to bail it out on its own, the country turned to the other 16 European Union countries that use the euro.

Rather than making Europe’s taxpayers foot the entire bill for bad banking, Cyprus and the other eurozone countries agreed to make the banks’ bondholders and big depositors contribute to the rescue. One bank, Laiki, is to be split up, with its nonperforming loans and toxic assets going into a “bad bank.” The healthy side will be absorbed into the Bank of Cyprus. Savers with more 100,000 euros in both Bank of Cyprus and Laiki will face big losses — possibly as much as 80 cents on the euro.

Related News On HPUB:

  • Last Call to be the World Leader in Outer Space. by Daniel Bruno

    Last Call to be World Leader First posted: 03/18/2010 at Huffpo “Where is that moon, that leads to your soul?” – Aromabar     Legend has it that Kaguya descended from a race of moon…

  • Electoral Science: The Winner of the 2016 Election Will be a Republican

    Originally published at Washington’s Blog in April, 2016   by Daniel Bruno   Electoral Science: The Winner of the 2016 Election Will be a Republican I was the first person in the world to proclaim…

  • Report from Rio

    Report from Rio Daniel “No Passport” Bruno, reporting from Rio de Janeiro. Daniel is from Manhattan, is an author, inventor, specialist in 9/11 studies, and the interview host at www.hpub.org which publishes over 1000 censored…

  • Join the Radical Republican Party

    The Radical Republican Party RRP aims to retire the two party system. Congressional approval ratings hover around 8% yet most members are re-elected over and over again. The old definitions of liberal and conservative, left…

... post your own so far 0 comments

Comments

No comments yet.

Leave a Comment

You must be logged in to post a comment.

 
  • Hpub asks

    • Will Trump Survive to January 1, 2018 ?

      View Results

      Loading ... Loading ...
  • Breaking News