As Fears of “Bank Run” Escalate, Italian Banks Get €150 Billion Bailout of Empty Promises

In today’s Europe, the most important rules are made to be bent, if not outright broken. So it goes with Italy’s blossoming banking crisis.

Earlier this week, Italy’s €40-billion bailout proposal was mercilessly scrapped by Germany earlier this week, on the grounds that it contravened Europe’s new bail-in rules. Cue Plan B, as reports surfaced today that the EU had authorized the country to use “government guarantees” to create a “precautionary liquidity support program for their banks. The total amount currently doing the rounds is €150 billion.

That’s a lot of money, even by today’s inflated standards. In the initial bailout of Spain’s saving banks, in 2012, the EU provided Rajoy’s government with just €40 billion of fresh cash. If the latest reports are true, Italy just received almost four times that amount.

But did it, really? Does the money even exist?

Continue reading the article at WOLF STREET

2 thoughts on “As Fears of “Bank Run” Escalate, Italian Banks Get €150 Billion Bailout of Empty Promises

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