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
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    Default 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!

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

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    Quote 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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    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...

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    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.
    “We've always defined ourselves by the ability to overcome the impossible. And we count these moments. These moments when we dare to aim higher, to break barriers, to reach for the stars, to make the unknown known. We count these moments as our proudest achievements. But we lost all that. Or perhaps we've just forgotten that we are still pioneers. And we've barely begun. And that our greatest accomplishments cannot be behind us, because our destiny lies above us.”

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    Quote 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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    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.
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    Quote 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...

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    Quote 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?

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