They are the 10th largest bank in Italy and have over 529 locations across Italy and approx. 4,600 employees.
They had a loss of EUR 388m in 2017.
Their entire board has resigned and the Govt has taken over in order to prevent an entire banking collapse.
They still need to raise or inject approx. half a billion Euros to get this on track which is a loss to the tax payers of EU or Italy depending on who bails out the bank.
But with HP Printers available around the world, printing money and indebting the future generation in order to avoid a calamity today, the calamity shall be postponed into the future, so that all the banks in the entire world can collapse on the same day in a synchronized manner.
Just in Nov 2018, fellow banks voluntarily tried to save this bank, however, it appears that agreement could not be fulfilled and EUR 400m could not be raised to save the bank and then the the year end arrived.
Here is the agreement done in Nov 2018 but it could not be voted towards the end of Dec 2018 and hence we have a bail out:
Just 2 years ago, another oldest bank, Monte De Paschi had to be bailed out in Italy.
Part of the reason this bank is tumbling is because shipping industry as well as trade is collapsing globally and Genoa has played a major role in shipping and trade. They probably have lots of defaults from various businesses especially in the shipping sector.
Let's hope that EUR 16 billion that is held by depositors with Banca Carige in Italy does not get stuck in an insolvency process like Espirito Santo of Portugal or Laiki Bank of Cyprus or Lehman Bros of USA.
Good luck to all the depositors!
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.