The Italian
banking system is in serious trouble, and the failure of these four
banks is simply the tip of the iceberg.
An
Italian pensioner committed suicide this week. He hung himself after
the Italian government’s rescue of small four banks wiped out his
life savings. The bailout was carried out under the principles
which governed Cyprus’ bailout. All of the stakeholders in the
bank, including depositors, were at risk in the banks’ failure.
These were small banks, so the reality of what was happening did not
strike home immediately. This man’s suicide did. Italian consumer
protection groups, Adusbef and Codacons, have demanded a criminal
investigation into the case. This suicide and subsequent reaction by
consumer defense groups mark the first glimmer of growing public
concern over the security of bank deposits in Italy.
As tensions
grow between Italy and the EU over the country's banking system, as
well as the Italian government and domestic public pressure,
conditions will come closer to realizing Geopolitical Future’s 2016
forecast of a banking crisis in Italy.
The Italian
banking system is in serious trouble, and the failure of these four
banks is simply the tip of the iceberg. Non-performing loans, loans
that debtors are not paying off as agreed, but which have not yet
been written off by the banks, have been rising. At this point 18
percent of all outstanding loans in Italy are non-performing. That is
an extraordinarily high level, particularly when you consider that
Italy is the eighth largest economy in the world and the fourth in
Europe.
Read
the rest of the story:
Another chance for the European Financial Dictatorship
to attack on Italy.
Coming:
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