Jan 18

Italian Banks Collapse, Short Sales Banned As Loan Loss Fears Mount:

Italian bank stocks are crashing (with BMPS down 40% year-to-date) as Reuters reports that investors are growing increasingly nervous about how the sector will cope with lower interest rates and a 200 billion euro ($218 billion) pile of loans that are unlikely to be repaid. The broad banking sector is down 4% with stocks suspended, and in light of this bloodbath, Italian regulators have decided in their wisdom, to ban short-selling of some bank stocks (which has driven hedgers into the CDS market, spking BMPS credit risk).

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2 Responses to “Italian Banks Collapse, Short Sales Banned As Loan Loss Fears Mount”

  1. squodgy Says:


  2. squodgy Says:

    I wonder who’s next?


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