[Skip to the end]

(email exchange)

Anyone hearing about issues at Unibank in Italy?

>   
>   On Thu, Oct 2, 2008 at 11:17 AM, Kevin wrote:
>   
>   If you mean Unicredito (UCG IM), yesterday there was talk they were to call an
>   EGM, with a rumor that the CEO Profumo was to resign and talk the bank was
>   suffering from liquidity issues. They subsequently announced some real estate
>   sales improving their tier 1 capital ratio. At the same time Italy suspended
>   short sales. Today I see they are looking to raise euro 2.3bn, through the
>   sales senior bonds, aimed at retail investors.
>   
>   Having been regarded as one of Europes strongest banks, market has been
>   concerned that Profumo has persistently claimed they have no balance sheet
>   problems, despite worsening financial environment.
>   
>   Senior cds is trading at 140bp (5yr), it was 80/90 on sept 25th.
>   
>   Kevin

Thanks, heard they are very big and having issues.

US market action seems to be spreading to the eurozone where it can do a lot more damage than it’s doing here.


[top]

3 Responses

  1. “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. ”

    Laws are being broken everywhere, forget about the illegal naked short selling, the insider purchasing on GS before warren buffet bought it, the fed announcing authorizing interest on reserves monday even though the stimulation bill didn’t authorize them to have that power until october 1st (if it was even going to pass at that point – which it didn’t), now my lawyer friends are telling me the bill is not constitutional because it authorized powers on oct 1 but did not pass until oct 3 which gets into all kinds of constitutional trouble – this is a total farking mess that the lawyers are going to have a field day with. Now congressman Sherman saying that he was threatened with 3000 point dow drops a day and Bush implementing Martial Law if he didn’t pass the bill. It is all such a comedy. Keep your Rum close 😉

  2. also been wondering by what authority the Fed is lending unsecured $620 billion to foreign central banks (mostly the ecb)?

Leave a Reply