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Bail in risk – €4 Trillion Italian banking system at risk as referendum looms Sunday according to Financial Times
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Concerns of multiple bank failures – Eight banks at risk of failure and bail ins
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Monte dei Paschi di Siena, third largest by assets and mid-sized banks Popolare di Vicenza, Veneto Banca and Carige and four smaller banks
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Italy’s banks have €360 billion of problem loans
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Contagion poses risks to Unicredit, Italy’s largest bank by assets and only globally significant financial institution
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Bail in risks highlight importance of deposit diversification and gold
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Imprudent to have all ‘savings eggs’ in ‘bankers basket’
“Up to eight of Italy’s troubled banks risk failing if prime minister Matteo Renzi loses a constitutional referendum next weekend and ensuing market turbulence deters investors from recapitalising them, officials and senior bankers say.
Mr Renzi, who says he will quit if he loses the referendum, had championed a market solution to solve the problems of Italy’s €4 trillion banking system and avoid a vote-losing “resolution” of Italian banks under new EU rules.”
Financial Times
The Italian banking system looks vulnerable to collapse whether the referendum is passed in Italy or not. Were the referendum passed, it may allow senior Italian and international bankers to further ‘kick the can down the road’ and delay the inevitable.
Financial and economic contagion in the EU is the likely outcome of the financial and political mess that both Italy and other EU states find themselves in. The question is increasingly not if, but when.
Bail-ins are “now the rule” and depositors need to begin preparing by diversifying and not have all their ‘saving eggs’ in the ‘bankers basket’.
An important way to protect investments and savings is to be diversified and have a healthy allocation to physical gold – both in one’s possession and in secure storage, in the safest vaults in the world.
Read full Financial Times article on Irish Times here
Gold and Silver Bullion – News and Commentary
Gold rises from multi-month lows as dollar eases (Reuters.com)
Gold recovers in Asia as investors see buying opportunities (Investing.com)
No proposal to restrict gold holding by individuals in India (IndiaTimes.com)
Gold not safe enough, hoarders opt for silver bars (NewIndianExpress.com)
Trump Claims Millions Voted Illegally, Without Giving Proof (Bloomberg.com)
Italian Prime Minister Matteo Renzi addresses supporters ahead of the constitutional reform referendum this Sunday (AFP PHOTO/ANDREAS SOLARO)
This Week “Could Shake The World …” (TheAustralian.com)
First Brexit then Trump. Is Italy next for the west’s populist wave? (TheGuardian.com)
Trump, Draghi May Bring A Return Of “European Solvency Crisis”: Barclays (ZeroHedge.com)
Venezuela’s currency is so devalued it no longer fits in ordinary wallets (WashingtonPost.com)
Stocks In Greatest Suckers’ Rally Of All Time: Stockman (CNBC.com)
Gold Prices (LBMA AM)
28 Nov: USD 1,189.10, GBP 956.51 & EUR 1,117.99 per ounce
25 Nov: USD 1,187.50, GBP 953.30 & EUR 1,121.83 per ounce
24 Nov: USD 1,187.25, GBP 953.60 & EUR 1,125.04 per ounce
23 Nov: USD 1,213.25, GBP 980.00 & EUR 1,143.00 per ounce
22 Nov: USD 1,217.55, GBP 978.91 & EUR 1,144.98 per ounce
21 Nov: USD 1,214.95, GBP 984.72 & EUR 1,143.39 per ounce
18 Nov: USD 1,206.10, GBP 971.15 & EUR 1,135.54 per ounce
Silver Prices (LBMA)
28 Nov: USD 16.68, GBP 13.45 & EUR 15.73 per ounce
25 Nov: USD 16.47, GBP 13.21 & EUR 15.55 per ounce
24 Nov: USD 16.31, GBP 13.09 & EUR 15.43 per ounce
23 Nov: USD 16.56, GBP 13.36 & EUR 15.59 per ounce
22 Nov: USD 16.76, GBP 13.46 & EUR 15.77 per ounce
21 Nov: USD 16.68, GBP 13.47 & EUR 15.69 per ounce
18 Nov: USD 16.51, GBP 13.30 & EUR 15.54 per ounce
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