“He also said a precautionary state recapitalization of banks can only be part of a solution in exceptional cases and under strict conditions and that owners and creditors must be among the first to suffer losses. The bank must be solvent, he added and state money must not be used to cover losses.”
PG View: Monte Paschi remains on the brink and Germany’s hard-line certainly is not going to help pull the bank back from the edge. In fact, the ECB is now saying Monte Paschi needs to raise $9.2 bln, nearly twice as much as the ongoing effort seeks to raise. That’s going to smart twice as much for those owners and creditors . . .