Bail-Ins Coming? World’s Oldest Bank “Survival Rests On Savers”

Home/Blog/Bail-Ins Coming? World’s Oldest Bank “Survival Rests On Savers”

Bail-Ins Coming? World’s Oldest Bank “Survival Rests On Savers”

Bail-Ins Coming To Italy? World’s Oldest Bank “Survival Rests On Savers”

The world’s oldest bank and Italy’s third biggest bank, Monte dei Paschi di Siena (MPS), is making a last-ditch emergency attempt as the year ends to convince tens of thousands of ordinary Italian savers to help it escape state hands.

Bail-Ins Coming? World's Oldest Bank “Survival Rests On Savers” Bail-Ins Coming? World’s Oldest Bank “Survival Rests On Savers” Toscana Siena3 tango7174Source: Wikimedia.org

MPS shares fell 8.5% in early trading this morning as the bank began its attempt to entice institutional and retail investors to snap up fresh shares.  The bank wants 40,000 retail investors and savers to take part in a complex €5 billion (£4.18bn) bailout. The Tuscan lender said it is pressing ahead with a highly-ambitious plan to persuade private investors to convert their bonds into shares. This process must be completed in the next two weeks – by the end of the year.

MPS has become the focus of fears about the Italian banking system, which is on the verge of collapse with €360 billion of bad debts amassed in recent years. Unicredit, Italy’s biggest bank, last week announced plans to raise €13 billion through a record-breaking share issue and slash another 11% of the workforce

The risk of bail-ins in the €4 trillion banking system in Italy remains high and if the current bailout attempt does not work, then it is expected that the EU will force the Italian government to enforce the new EU and G20 enacted bail-in legislation which would see individual savers, including small and medium size enterprises, having some of their savings confiscated.

There are state guarantees on bank deposits of €100,000 in most EU jurisdictions but it is important to realise that this arbitrary “guarantee” figure could be reduced significantly in event of a large bank or many large banks failing.

Bail-ins are “now the rule” in most Western countries and depositors need to begin preparing by diversifying and not have all their ‘saving eggs’ in the ‘banking basket’. An important way to protect investments and savings is to be diversified and have a healthy allocation to physical gold in non bank, allocated and segregated storage.

News and Commentary

Bullion rises after China seizes US drone (News.com)

Gold Makes Pushback After Getting ‘Smoked’ by Fed’s Hike, Trump (MSN)

Gold prices gain on weaker U.S. dollar (Reuters)

Gold prices gain in Asia as U.S.-China tensions simmer (Mo4ch)

Gold extends recovery from last week’s multi-month low (FX Street)

Bail-Ins Coming? World's Oldest Bank “Survival Rests On Savers” Bail-Ins Coming? World’s Oldest Bank “Survival Rests On Savers” gold 10 month low

With Gold Prices Stuck in ‘Purgatory,’ Hedge Funds Pull Out (Bloomberg)

Turks Seek Gold More Than Liras in Response to Erdogan’s Call (Bloomberg)

Silver price manipulation continues (TF Metals)

“They don’t call it the fix for nothing” (Gata)

“When Gold Goes Above 1430 We Whack It” (Zerohedge)

7RealRisksBlogBanner Bail-Ins Coming? World's Oldest Bank “Survival Rests On Savers” Bail-Ins Coming? World’s Oldest Bank “Survival Rests On Savers” 7RealRisksBlogBanner

Gold Prices (LBMA AM)

19Dec: USD 1,137.60, GBP 913.15 & EUR 1,089.14 per ounce

16Dec: USD 1,134.85, GBP 911.17 & EUR 1,084.80 per ounce

15Dec: USD 1,132.45, GBP 904.37 & EUR 1,080.70 per ounce

14Dec: USD 1,160.95, GBP 917.38 & EUR 1,091.99 per ounce

13Dec: USD 1,157.35, GBP 911.18 & EUR 1,090.80 per ounce

12Dec: USD 1,154.40, GBP 916.82 & EUR 1,089.41 per ounce

09Dec: USD 1,168.90, GBP 927.64 & EUR 1,100.75 per ounce

Silver Prices (LBMA)

19Dec: USD 16.00, GBP 12.89 & EUR 15.34 per ounce

16Dec: USD 16.05, GBP 12.91 & EUR 15.36 per ounce

15Dec: USD 16.14, GBP 12.95 & EUR 15.51 per ounce

14Dec: USD 17.11, GBP 13.52 & EUR 16.07 per ounce

13Dec: USD 17.01, GBP 13.39 & EUR 16.04 per ounce

12Dec: USD 16.86, GBP 13.34 & EUR 15.90 per ounce

09Dec: USD 16.95, GBP 13.45 & EUR 16.03 per ounce

Recent Market Updates

– Fed Raised Rates 0.25% – Rising Rates Positive For Gold

– Shariah Gold Standard Is “Revolutionary” – Mobius

– Silver Fixing By Banks Proven In Traders Chats

– Euro Crisis and Contagion Coming In 2017

– ECB ‘Bazooka’ Reloaded Until At Least December 2017 – Euro Gold Rises 1%; 13% YTD

– UK £6 Billion Worse Off After Multi Billion Pound Gold “Accounting Error”

– Buy Silver – May Replace Gold As Money In India

– Shariah Gold Standard Approved for $2 Trillion Islamic Finance Market

– Potential “Systemic Crisis In Eurozone” After Italy Votes No, Renzi Resigns

– Gold and Silver Will Protect From Coming Financial Crash – Rickards

– Blockchain Technology – What Is It and How Will It Change Your Life?

– RBS Fail Bank of England Stress Test

– Peak Silver – Supply Deficits Mean Higher Prices

The post Bail-Ins Coming? World’s Oldest Bank “Survival Rests On Savers” appeared first on GoldCore Gold Bullion Dealer.

Bail-Ins Coming? World's Oldest Bank “Survival Rests On Savers” Bail-Ins Coming? World’s Oldest Bank “Survival Rests On Savers”   ptq

By | 2016-12-23T20:17:00+00:00 December 20th, 2016|Blog|0 Comments

About the Author: