{"id":7128,"date":"2016-05-11T19:40:43","date_gmt":"2016-05-11T16:40:43","guid":{"rendered":"http:\/\/bestinsurance.gr\/a1\/?p=7128"},"modified":"2016-05-11T16:58:43","modified_gmt":"2016-05-11T13:58:43","slug":"italian-banks-are-crashing-again-after-bad-loan-writedowns-soar","status":"publish","type":"post","link":"https:\/\/bestinsurance.gr\/a1\/archives\/7128","title":{"rendered":"Italian Banks Are Crashing (Again) After Bad-Loan Writedowns Soar"},"content":{"rendered":"<div data-animation=\"no-animation\" data-icons-animation=\"no-animation\" data-overlay=\"\" data-change-size=\"\" data-button-size=\"0.7\" style=\"font-size:0.7em!important;display:none;\" class=\"supsystic-social-sharing supsystic-social-sharing-package-flat supsystic-social-sharing-content supsystic-social-sharing-content-align-left\" data-text=\"\"><a data-networks=\"[]\" class=\"social-sharing-button sharer-flat sharer-flat-1 counter-arrowed facebook\" target=\"_blank\" title=\"Facebook\" href=\"http:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fbestinsurance.gr%2Fa1%2Farchives%2F7128\" data-main-href=\"http:\/\/www.facebook.com\/sharer.php?u={url}\" data-nid=\"1\" data-name=\"\" data-pid=\"1\" data-post-id=\"7128\" data-url=\"https:\/\/bestinsurance.gr\/a1\/wp-admin\/admin-ajax.php\" rel=\"nofollow\" data-mailto=\"\"><i class=\"fa-ssbs fa-ssbs-fw fa-ssbs-facebook\"><\/i><div class=\"counter-wrap arrowed\"><span class=\"counter\">0<\/span><\/div><\/a><a data-networks=\"[]\" class=\"social-sharing-button sharer-flat sharer-flat-1 counter-arrowed twitter\" target=\"_blank\" title=\"Twitter\" href=\"https:\/\/twitter.com\/share?url=https%3A%2F%2Fbestinsurance.gr%2Fa1%2Farchives%2F7128&text=Italian+Banks+Are+Crashing+%28Again%29+After+Bad-Loan+Writedowns+Soar\" data-main-href=\"https:\/\/twitter.com\/share?url={url}&text={title}\" data-nid=\"2\" data-name=\"\" data-pid=\"1\" data-post-id=\"7128\" data-url=\"https:\/\/bestinsurance.gr\/a1\/wp-admin\/admin-ajax.php\" rel=\"nofollow\" data-mailto=\"\"><i class=\"fa-ssbs fa-ssbs-fw fa-ssbs-twitter\"><\/i><div class=\"counter-wrap arrowed\"><span class=\"counter\">0<\/span><\/div><\/a><\/div><p>Italian Banks Are Crashing (Again) After Bad-Loan Writedowns Soar.Banco Popolare is dragging the rest of the Italian banking system drastically lower today after a<strong>&#8220;susprise&#8221; Q1 loss driven by soaring bad loan writedowns<\/strong>. Banco Popolare is down 14% on the day (25% in a week) to a record low, as Reuters reports the bank was<strong> forced to admit the reality of its bad loans by the European Central Bank <\/strong>as a condition for approving a planned merger with Banca Popolare di Milano that will create Italy&#8217;s third-biggest banking group.<\/p>\n<p>A week in the life of Italian banks&#8230; bloodbath..<\/p>\n<p>&nbsp;<\/p>\n<p><a href=\"http:\/\/www.reuters.com\/article\/banco-popolare-stocks-idUSL5N1881YM\">As Reuters notes,<\/a> <strong>Italian banks have lost nearly 40 percent of their market value so far this year, <\/strong>weighed down by concerns they could need additional capital to shoulder losses from sales of bad loans that rose to 360 billion euros ($410 billion) during a long recession.<\/p>\n<blockquote>\n<div class=\"quote_start\"><\/div>\n<div class=\"quote_end\"><\/div>\n<p><strong>A share rebound triggered by the hasty creation last month of the fund intended to inject capital into weaker lenders and buy their bad loans proved short-lived.<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>Banco Popolare said late on Tuesday that it had <strong>written down loans for 684 million euros in the first quarter, nearly four times more than in the same period of 2015<\/strong>, posting a net loss of 314 million euros for the first three months.<\/p>\n<p>&nbsp;<\/p>\n<p>CEO Pierfrancesco Saviotti told an analyst call that the loan writedowns were the<strong>first step towards selling chunks of bad loans and that it would book further provisions this year.<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>He said the ECB wanted provisions to cover 62 percent of the most troubled loans up from a 60 percent coverage ratio the bank reached in the first quarter.<\/p>\n<p>&nbsp;<\/p>\n<p>Bankers say<strong> other Italian banks are likely to follow in the steps of Banco Popolare <\/strong>and raise cash to make up for loan losses.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Loans to insolvent borrowers are valued on average at around 40 percent of their nominal value on Italian banks&#8217; balance sheets but market prices for these assets reach at most 30-35 cents on the dollar when the loan is backed by a good-quality property.<\/strong><\/p><\/blockquote>\n<p>This won&#8217;t end well&#8230; and yet everyone is ignoring the systemic concerns here&#8230; It&#8217;s far from over at DB&#8230;<\/p>\n<p><a href=\"http:\/\/www.zerohedge.com\/sites\/default\/files\/images\/user3303\/imageroot\/2016\/05\/11\/20160511_ITA2.jpg\"><img decoding=\"async\" src=\"http:\/\/www.zerohedge.com\/sites\/default\/files\/images\/user3303\/imageroot\/2016\/05\/11\/20160511_ITA2_0.jpg\" alt=\"\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<p>Source:<a href=\"http:\/\/www.zerohedge.com\/news\/2016-05-11\/italian-banks-are-crashing-again-after-bad-loan-writedowns-soar\" target=\"_blank\">link<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<div data-animation=\"no-animation\" data-icons-animation=\"no-animation\" data-overlay=\"\" data-change-size=\"\" data-button-size=\"0.7\" style=\"font-size:0.7em!important;display:none;\" class=\"supsystic-social-sharing supsystic-social-sharing-package-flat supsystic-social-sharing-content supsystic-social-sharing-content-align-left\" data-text=\"\"><a data-networks=\"[]\" class=\"social-sharing-button sharer-flat sharer-flat-1 counter-arrowed facebook\" target=\"_blank\" title=\"Facebook\" href=\"http:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fbestinsurance.gr%2Fa1%2Farchives%2F7128\" data-main-href=\"http:\/\/www.facebook.com\/sharer.php?u={url}\" data-nid=\"1\" data-name=\"\" data-pid=\"1\" data-post-id=\"7128\" data-url=\"https:\/\/bestinsurance.gr\/a1\/wp-admin\/admin-ajax.php\" rel=\"nofollow\" data-mailto=\"\"><i class=\"fa-ssbs fa-ssbs-fw fa-ssbs-facebook\"><\/i><div class=\"counter-wrap arrowed\"><span class=\"counter\">0<\/span><\/div><\/a><a data-networks=\"[]\" class=\"social-sharing-button sharer-flat sharer-flat-1 counter-arrowed twitter\" target=\"_blank\" title=\"Twitter\" href=\"https:\/\/twitter.com\/share?url=https%3A%2F%2Fbestinsurance.gr%2Fa1%2Farchives%2F7128&text=Italian+Banks+Are+Crashing+%28Again%29+After+Bad-Loan+Writedowns+Soar\" data-main-href=\"https:\/\/twitter.com\/share?url={url}&text={title}\" data-nid=\"2\" data-name=\"\" data-pid=\"1\" data-post-id=\"7128\" data-url=\"https:\/\/bestinsurance.gr\/a1\/wp-admin\/admin-ajax.php\" rel=\"nofollow\" data-mailto=\"\"><i class=\"fa-ssbs fa-ssbs-fw fa-ssbs-twitter\"><\/i><div class=\"counter-wrap arrowed\"><span class=\"counter\">0<\/span><\/div><\/a><\/div><p>Italian Banks Are Crashing (Again) After Bad-Loan Writedowns Soar.Banco Popolare is dragging the rest of the Italian banking system drastically lower today after a&#8220;susprise&#8221; Q1 loss driven by soaring bad loan writedowns. Banco Popolare is down 14% on the day (25% in a week) to a record low, as Reuters reports the bank was forced<\/p>\n","protected":false},"author":1,"featured_media":7129,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[],"class_list":["post-7128","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-1"],"jetpack_publicize_connections":[],"_links":{"self":[{"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/posts\/7128","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/comments?post=7128"}],"version-history":[{"count":2,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/posts\/7128\/revisions"}],"predecessor-version":[{"id":7131,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/posts\/7128\/revisions\/7131"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/media\/7129"}],"wp:attachment":[{"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/media?parent=7128"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/categories?post=7128"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/tags?post=7128"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}