War Of Words Erupts As Italy’s PM Slams Mario Draghi: “You Could Have Done More To Help Italian Banks”

• War Of Words Erupts As Italy’s PM Slams Mario Draghi: “You Could Have Done More To Help Italian Banks”
  by Tyler Durden, www.zerohedge.com 
  Italy’s Prime Minister, Matteo Renzi, is getting desperate, and with good reason. As we reported this morning, the rally in European stocks fizzled and Italian banks tumbled after Italy’s 3rd largest (and the world’s oldest) bank, Monte Paschi cratered after it confirmed receipt of a letter from the ECB which had asked the troubled lender to cut its bad debts by 40% within three years,  or to €14.6 billion 2018 from €24.2 billion at the end of 2015.
  –
  And since there are no natural buyers for these NPLs (at least not at the prices demanded by the insolvent bank), the ECB has effectively heaped even more pressure on Rome to stabilize its banking system at a time when Rome itself was hoping that Europe would help bail out its banks. This means that instead of being allowed to inject public – or rather European – funds into its banks while bypassing the much dreaded bail-in which could result in a panicked bank run as depositors scramble to avoid haicuts, Italian banks may have no choice but to dilute themselves to death, hence today’s abysmal price action which saw Monte Paschi’s stock price drop to an all time low.
  –
  read more.

end