Thursday,
October 30, 2008
The
ANNOTICO Report
The
Epitome of Chutzpah!!!!
The
Banks don
My
View point is that the Government should instead of Preferred Stock,
which is better than Common Stock, that they instead expect BONDS,
and those that have Priority, otherwise, there is Great Risk, and little
Reward, since the Bank Assets and Deposits are HIGHLY LEVERAGED with KNOWN
TOXIC LOANS
A
Bankruptcy could let the Banks off the Hook, and the Taxpayer Stock worthless.
Don
Reuters
By
Robin Pomeroy
Thu
Oct 30, 2008
Although the
topic is not on the agenda of Friday
Prime Minister Silvio Berlusconi is due to meet bank chiefs later on
Thursday to discuss the situation.
The government
has passed emergency laws giving it the power to take stakes in banks with
non-voting shares with preferential dividend rights, but the banking system
is still waiting for details of how the measures will be implemented.
Berlusconi has
hinted that further steps could be taken to help banks.
"It is
necessary to underline the crucial importance of having a system which, if
public capital is injected into banks or if the government intervenes to
strengthen capital ratios, guarantees the full continuity of the private sector
nature of (that) system," the head of the Italian Banking Association ABI,
Corrado Faissola, told a parliamentary hearing.
In common with
most other European countries,
But no bank has
so far come forward to accept the government
Banks say they
are solid enough and are unwilling to risk the stigma of asking for help. They
are also thought to be wary of allowing the state to gain more control over
their actions.
But with neighbouring countries injecting vast sums of cash into
their banks, some Italian lenders are being left with lower capital ratios, raising concerns that
NEW
MEASURES BY THE WEEKEND?
Financial daily
Il Sole 24
"The range
of instruments available for the state intervention is wider than the
"They will
be instruments that are closer to debt than equity to alleviate the fear
in banking circles that the state intends to enter banks
Italian media
have speculated that the country
Investment bank Mediobanca
(MDBI.MI: Quote, Profile, Research, Stock Buzz), one of the banks Il Sole said
might also take part in the scheme, played down that option.
Board member Tarak ben Ammar told journalists it had a Core Tier 1 ratio -- which
measures capital available against risky assets -- of over 10 percent.
Italian banks
Berlusconi has said it is vital banks continue to lend,
especially to individuals and small and medium-sized companies and the
government is likely to require banks subscribing to the new measures give
guarantees that they will do that. (Reporting by Robin Pomeroy; editing by John
Stonestreet)
The
ANNOTICO Reports Can be Viewed (With Archives*) on:
Blog:
www.AnnoticoReport.com
Italia
Italia Mia: www.ItaliaMia.com *
Topix.net:
www.topix.net/world/italy
Annotico
Email: annotico@earthlink.net