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Bank crisis in Italy may spark ‘doom loop’ for UK, warns Bank of England

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    Bank crisis in Italy may spark ‘doom loop’ for UK, warns Bank of England

    Bank crisis in Italy may spark ‘doom loop’ for UK, warns Bank of England

    A fresh banking crisis in Italy could spark a devastating “doom loop” that threatens UK financial stability, the Bank of England has warned.

    Bank officials are concerned that problems affecting Italian lenders could spread across the Eurozone and eventually be transmitted to the UK economy through French and German banks, which have massive exposure to Italy.

    Big French banks own tens of billions of Italian sovereign debt. BNP Paribas had €9.8bn (£8.7bn) at the end of 2017, BPCE had €8.5bn and Crédit Agricole €7.6bn. UK financial institutions own very little Italian debt but they have “much higher claims on countries with close links to Italy, including France and Germany.”

    “Although direct UK...

    Bank crisis in Italy may spark ‘doom loop’ for UK, warns Bank of England

    DOOMed!

    #2
    But I thought (i.e. know, but I'm being facetious because you're selectively reporting stuff) that Italy had stockpiled gold over the last ten years and had plenty of savings so we don't need to worry about them any more?

    Take your duplicitous reporting and shove it.
    The greatest trick the devil ever pulled was convincing the world that he didn't exist

    Comment


      #3
      Euro-Zone credit crisis at 12 O'Clock. I've been expecting you.

      Comment


        #4
        Originally posted by LondonManc View Post
        But I thought (i.e. know, but I'm being facetious because you're selectively reporting stuff) that Italy had stockpiled gold over the last ten years and had plenty of savings so we don't need to worry about them any more? Take your duplicitous reporting and shove it.
        Italy's debt is 2.3 trillion euros.

        Italy's gold reserves are close to 2500 tons, valued at current spot price of (34k EUR per kilo) is 0.085 trillion euros - dumping so much gold would crash price, so they'll never sell it for even that much.

        Do you see a problem there?

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          #5
          Bank Of England predictions face serious credibility devaluation.

          Or maybe not...

          His heart is in the right place - shame we can't say the same about his brain...

          Comment


            #6
            Deutsche Bank and its derivatives market exposure should be the talking point. Quite certain the German government will not step in to save the bank if it goes under. As it should be.
            "Never argue with stupid people, they will drag you down to their level and beat you with experience". Mark Twain

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              #7
              Originally posted by AtW View Post
              Bank officials are concerned that problems affecting Italian lenders could spread across the Eurozone and eventually be transmitted to the UK economy through French and German banks, which have massive exposure to Italy.
              But not until after it has decimated the French and German systems............by which time we will no longer be part of the Eurozone.........oh dear, how sad, never mind.

              Still, as we, one of the main contributors to the whole EU circus will have pulled our funding by then, I am sure the French and German contributions can simply be hiked accordingly to make up any shortfall.
              “The period of the disintegration of the European Union has begun. And the first vessel to have departed is Britain”

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                #8
                EU monetary fund to save EU banks by tying in countries with less exposure to share the risk.

                Merkel wants European Monetary Fund with national oversight - sources | Reuters

                Time to get out before a few billion net a year is no longer the entry fee.
                Maybe tomorrow, I'll want to settle down. Until tomorrow, I'll just keep moving on.

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                  #9
                  Originally posted by shaunbhoy View Post
                  But not until after it has decimated the French and German systems............by which time we will no longer be part of the Eurozone.........oh dear, how sad, never mind.

                  Still, as we, one of the main contributors to the whole EU circus will have pulled our funding by then, I am sure the French and German contributions can simply be hiked accordingly to make up any shortfall.
                  Ignorance is bliss...

                  The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain.
                  Brexit is having a wee in the middle of the room at a house party because nobody is talking to you, and then complaining about the smell.

                  Comment


                    #10
                    Originally posted by scooterscot View Post
                    Deutsche Bank and its derivatives market exposure should be the talking point. Quite certain the German government will not step in to save the bank if it goes under. As it should be.
                    Lehmans squared?

                    Comment

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