Friday, April 06, 2012

That mediterranean...

...the rotten underbelly of the failed Euro experiment. I am sure the Italian government is feverishly busy preparing a response to the imminent downgrades coming when Moody's releases its Italian Bank reports on April 16.

April 6 (Bloomberg) -- Italian banks borrowings from the European Central Bank rose in March to the most on record with the countrys lenders taking up almost a quarter of the funds offered to European lenders amid revived concerns about Europes debt crisis.
Total borrowing by Italian banks surged almost 40 percent to 270 billion euros ($353 billion) from 195 billion euros in February, the Bank of Italy said on its website today. Most of the funding, about 268 billion euros, was from longer-term refinancing operations, while 2.4 billion euros came from the main refinancing operations, the data show. Lenders in the whole euro area borrowed about 1.15 trillion euros from the ECB.
Italian banks, which took on more than 255 billion euros from the ECB in two auctions of three-year loans beginning in December, are struggling to fund themselves as the debt crisis has pushed up the cost of funding and made it harder for banks to access the interbank market and reach wholesale investors.

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