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Lorenzo Bini Smaghi

Insight: Mid-sized Italian banks face big bang for want of bucks

A deepening recession and banking stress tests could find Italy's mid-sized lenders short of billions of euros, putting the state on the hook for a new wave of cash calls and triggering an overhaul of how they do business.Even ahead of the European stress tests, expected to take place when or shortly before the European Central Bank (ECB) takes over direct supervision of euro zone banks next year, Italy's smaller banks are under pressure to boost their balance sheets after a Bank of Italy audit of problematic loans and to meet stricter Basel 3 capital rules. Bad loans in Italy have been climbing at an annual rate of 20 percent in recent months.In the port city of Genoa, birthplace of modern banking in the 15th century, regional market leader Carige is raising 800 million euros ($1 billion), equivalent to two thirds of its market value, by selling assets to boost its capital.With a core tier one ratio of 6.7 percent, Carige's ability to absorb losses is among the weakest in Italy."Initi...

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  1. Analysis: Baltic experiment has lessons for euro zone

    By Sebastian TongIn their battle to bolster state finances and avoid sovereign defaults, euro zone policymakers may do well to examine the efforts of tiny neighbor L...

  2. ECB's Bini Smaghi : Crisis firepower must reflect risks

    It would be easier to deal with the euro zone debt crisis if more firepower was available, European Central Bank Executive Board member Lorenzo Bini Smaghi said, cal...

  3. Options open on ECB rate cut, October talk "wild"

    By Sakari Suoninen and Martin SantaFRANKFURT (Reuters) - European Central Bank officials encouraged hopes of a cut in interest rates to aid economic growth on Monday...

  4. Under fire, Europe works to bolster debt crisis fund

    By Dina Kyriakidou and Dan FlynnWASHINGTON (Reuters) - European policymakers began working on new ways to stop fallout from Greece's near-bankruptcy from inflicting ...

  5. Pressure rises for Greek debt buy-back, swap

    By Annika Breidthardt and George GeorgiopoulosATHENS/BERLIN (Reuters) - German Chancellor Angela Merkel called on Sunday for private investors to make a major contri...

  6. ECB's Bini Smaghi favours EFSF debt buybacks

    By George GeorgiopoulosATHENS (Reuters) - Allowing the EFSF bailout mechanism to buy back bonds from the secondary market would help deal with Europe's debt crisis, ...

  7. Analysis: Euro zone crisis enters dangerous new phase with Italy

    By Paul TaylorATHENS (Reuters) - The euro zone's debt crisis has taken a dangerous turn. Contagion is singeing the currency bloc's third biggest economy Italy, which...

  8. Analysis: Draghi may bring new tone as central bank head

    By Paul CarrelDraghi has so far shown no clear sign of taking different positions than Trichet on key policies. But his public communications style may, initially at...

  9. European Parliament endorses Draghi as ECB president

    BRUSSELS (Reuters) - The European Parliament formally endorsed Italy's Mario Draghi to be the next president of the European Central Bank on Thursday.French official...

  10. ECB expected to signal July rate increase

    By Sakari SuoninenFRANKFURT (Reuters) - The European Central Bank is likely to signal a July interest rate rise on Thursday while continuing to provide banks with un...

  11. ECB won't let Bini Smaghi be forced out: sources

    Yet if Italy nominates someone other then Bini Smaghi it risks jeopardizing the chances of Draghi to become president, as several euro zone countries have made clear...

  12. Greece mustn't default, ECB's Bini Smaghi tells FT

    LONDON (Reuters) - The idea that a Greek debt restructuring could be carried out in an orderly way is a "fairytale," European Central Bank board member Lorenzo Bini ...

  1. Italy banks do not need EU aid: econ minister

    Italian banks do not need a European Union bailout to boost their capital base, Economy Minister Fabrizio Saccomanni said on Tuesday.Saccomanni was asked by reporter...

  2. Italy Should Have Taken IMF Loan In 2011, Bini Smaghi Says-Report

    Italy should have accepted an International Monetary Fund program on offer in late 2011, Lorenzo Bini Smaghi, a former member of the European Central Bank's executiv...

  3. Snam Appoints Ex-ECB's Lorenzo Bini Smaghi As New Chairman

    Snam SpA (SRG.MI), Italy's biggest natural gas transport and storage company by capacity, Monday said it has appointed Lorenzo Bini Smaghi to the board of directors ...

  4. Bini Smaghi : Germany More Pro-Europe Than Italy, France -Report

    A former member of the European Central Bank's executive board says that "Germans are more pro-European than the French or Italians," in comments published Friday by...

  5. Bini Smaghi : Give ECB More Power To Oversee Banks -Report

    The European Central Bank should be given greater power to oversee euro-zone banks in order to curb "perverse incentives" stemming from its offer of cheap three-year...

  6. U.S. Economic Optimism Lifts European Shares

    A better outlook for the U.S. economy boosted European stocks and supported the euro on Friday, but any gains in the holiday-thinned markets are likely to prove shor...

  7. ECB Board Member Bini Smaghi Stepping Down

    Lorenzo Bini Smaghi, a member of the European Central Bank's six-member Executive Board, will step down early from his post to join Harvard University's Center for I...

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