- European Banking Bloodbath Spreads To Spain After Italy Fires €20 Billion “Bazooka” At €360 Billion Problem
by Tyler Durden, www.zerohedge.com
Total chaos reigns in European banking stocks this morning as Monte Paschi shares crash, soar, and plunge amid on-again, off-again bail-in, bail-out headlines (and stocks and bonds hit record lows). However, Italy is now not alone as Spanish banks are also bloodbathing following a European Court ruling on mortgage fraud went against them.
As MishTalk.com’s Michael Shedlock explains, bondholder bail-ins are on the way in Italy as private investors pulled the plug on a bank rescue. Rome plans a €20 billion bank bailout, but under eurozone rules junior bondholders have to take a hit.
Please consider Italy braces for Monte dei Paschi Rescue.