Montecillo Monthly Digest

The ECB has not only required capital increases from Banca Popolare di Vicenza and Veneto Banca, but is also imposing strict deadlines. Vicenza’s is now, and Veneto’s capital increase is set for June. The hurried meetings of banks called by Padoan’s team during February have given birth to atlante, a privately funded vehicle pooling resources to the tune of 4 to 6Bn Euros from all banks (foreign ones present in Italy included), pension funds, and insurers. That should keep the ...
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After a year lost as we all awaited the result of Italy and Brussels arguing about what did and did not constitute state aid, everybody has now figured out the limited impact of the Treasury guarantee, and estimates are getting bigger of how much recapitalization the Italian banks are going to need. After Barclays’ initial estimate of 24Bn Euros estimates are now circulating that more than 50Bn will be needed. Possibly as a result of banks deciding there is little ...
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