banks are unlikely to go "down"
you might have heard the expression "too big to fail", it basically means that the government will do everything necessary (even paying taxpayers money) to prevent a bank from going down
because if it does, the consequences (financial one's) will be enormous and their political career over. These two things go hand in hand
Topic: EU Banks Ball-In (Read 279 times)
Italian banks are in big trouble.Thay are holding 385bln euro of unpaid toxic debts.Last EU regulation doesnt permit for ball-out,so new mechanism ball-in will be used to rescue banks.In that case first banks will have to sell his actives,than stake holders and bond holders will pay,if that will be not enough money will be taken from depositors with acounts over 100000 euro
How serious it is.Yesterday Italian giants Uni Credito sold 10% of his 50%+1 stock of his daughter bank ,Polish Pekao SA .Pekao SA is his most profitable bank from all Unicredito group
But from that transaction Unicredito get 365 mln euro only,thay need minimum 9bln euro
Similar transaction have been done in Italy,Spain and Greece,banks are selling his stocks in privet transaction to collect funds
There is big danger that banks will have to take money from depositors accounts like it was in Cyprus
Imagine run on banks in Italy
Next is that even German LandsBank needs about 600000 mln euro
Be carful with banks,becouse there is no money there
How serious it is.Yesterday Italian giants Uni Credito sold 10% of his 50%+1 stock of his daughter bank ,Polish Pekao SA .Pekao SA is his most profitable bank from all Unicredito group
But from that transaction Unicredito get 365 mln euro only,thay need minimum 9bln euro
Similar transaction have been done in Italy,Spain and Greece,banks are selling his stocks in privet transaction to collect funds
There is big danger that banks will have to take money from depositors accounts like it was in Cyprus
Imagine run on banks in Italy
Next is that even German LandsBank needs about 600000 mln euro
Be carful with banks,becouse there is no money there
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