The Shocking Graph that Proves EU is DOOMED.. Italian Banks TUMBLE in Wake of Stress Tests
- The Shocking Graph that Proves EU is DOOMED.. Italian Banks TUMBLE in Wake of Stress Tests
by REBECCA PERRING, http://www.express.co.uk/
ITALY’S largest bank has borne the brunt of the country’s crippling banking crisis after it was forced to nurse massive losses in the wake of stress tests of European lenders.
This shocking graph shows how UniCredit’s shares have plunged by 9.4 per cent, adding to growing concerns about the solidity of the wider banking industry in the eurozone’s third largesteconomy.
Matteo Renzi’s country is already engulfed by a €360billion (£301billion) debt mountain that banks accumulated during a three-year recession. For a third day in a row UniCredit shares were halted as Europe’s banking stocks reeled over the devastating results of the European Union stress tests. It comes after investors rushed to dump UniCredit stock on Monday after stress tests issued on Friday prompted worries over the firm’s stability in a downturn.
The major financial pillars of the EU all delivered dire results following the EU stress tests assessment of how banks across the continent would deal with a global shutdown. And financial instability is set to spill over across the border, with the political future of Italy heavily dependent on the actions of Renzi’s Government.
The results echoed earlier warnings the country’s series of economic and political crises could blow up this year to rip apart the eurozone, as disastrous Greece almost did last year.
UniCredit added to these jitters on Wednesday when it revealed that its core capital – a key measure of financial strength – fell to 10.33 per cent in June from a pro-forma level of 10.85 per cent three months ago.
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