HALISTER: SocGen Chairman Sees Possible Systemic Crisis on Italy’s Banks

SocGen Chairman Sees Possible Systemic Crisis on Italy’s Banks

(Bloomberg) -- The banking market is under pressure due to the situation in Italy, Societe Generale Chairman Lorenzo Bini Smaghi said in an interview on Bloomberg Television.
  • Europe needs a credible back-stop for its banking system
  • EU banking rules need to be assessed, policy makers need to be pragmatic
  • European solution is needed for Italy; “in this situation, you need policy to step in”
  • Opportunity to consolidate Italian banking industry
  • Germany has too many banks that are not profitable
  • Market concern on Brexit is that we’re in for “very long” negotiations
  • Brexit fears are starting to materialize; people are starting to withdraw from mkts
  • U.K. economy is sitting on major imbalances’’
  • U.K. cutting corporate taxes creates risk of tax competition across Europe, leading to bigger deficits and debts
Alert: HALISTER
Source: BFW (Bloomberg First Word)

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GLE FP (Societe Generale SA)

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