Chronicles Of Depression 2.0: #306: Italy

UniCredit Directors to Meet on Capital Increase (Update1)

Oct. 4 (Bloomberg) — UniCredit SpA, Italy’s biggest lender, will hold an extraordinary board meeting tomorrow to discuss a plan to boost its regulatory capital and settle investors’ concern with its finances.

The Milan-based bank is considering paying its dividend in shares to hold on to about 3 billion euros ($4.1 billion) in cash and bolster its Core Tier 1 capital ratio, Il Sole-24 Ore and Ansa newswire reported today without citing anyone. Francesca Palermo, an UniCredit spokeswoman, declined to comment on the plan. The meeting will be in the afternoon, Ansa said.

UniCredit shares plummeted 24 percent during the first three days of last week. The stock then recovered some of the losses after Italy’s stock-market regulator on Oct. 1 banned short sales of banking and insurance stocks, and Prime Minister Silvio Berlusconi said he “won’t permit speculative attacks” on banks.

I heard that Unicredit is planning a capital increase and it is not a reason for concern,” Berlusconi told reporters today in Paris after a meeting of European leaders. “It is a further guarantee that there are no dangers for the bank.”

Emphasis added by me.

WTF?!

This report is based on nothing but rumor?

And even more rumor:

Consob, Italy’s market watchdog, may have uncovered a case of short selling of UniCredit shares borrowed and sold on Sept. 30 and not delivered back to the lender as of yesterday’s deadline, Ansa reported, without citing anyone. Italy’s finance police are investigating the whereabouts of 60 million UniCredit shares valued at about 180 million euros, Ansa said.

Emphasis added by me.

Do they do reporting differently in Italy?

More:

The financial crisis that left New York-based Lehman Brothers Holdings Inc. and Washington Mutual Inc. of Seattle bankrupt is spreading through Europe. Five banks were bailed out this past week by European governments.

Emphasis added by me.

At last: facts!

I’d still keep an eye on Italy.

Explore posts in the same categories: Bank Collapse Watch, C.O.A.T. - Belief, C.O.A.T. - Money, C.O.A.T. - Politics, C.O.A.T. - Scams, C.O.A.T. - Self-Defense, Depression 2.0

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: