Italian Bank Scandal Spreads To Other Banks: Berlusconi Big Winner

Tyler Durden's picture

As we warned last week when the BMPS fraud story broke, this is highly likely to be the canary in the Italian banking system coalmine; and sure enough today, Reuters reports that:


Italian bank stocks (still under short-selling bans) are plunging (and the EUR is dropping) but, as Reuters notes, the winner in this growing debacle is Berlusconi as Italians blame the Democratic Party for the problems at the banks. Most pollsters, however, still think it unlikely that Berlusconi can overtake Bersani with little more than three weeks to go - after being more than 15 points behind in early December. And just as a reminder Mario Draghi was running the Bank of Italy during this era of evasion.


Today in Italian Banks...

and YTD...


Charts: Bloomberg

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Uskatex's picture

In Italy in the past diesel was commonly used to heat buildings. Now almost everyone switched to gas (imported from Algeria, Lybia and Russia).  Moreover, most goods are transferred using diesel trucks, and this year the internal market plunged at least 10%. People tend to use less their cars (mostly diesel), though city traffic is still intense.

This should explain the drop in diesel consumption. 

THE DORK OF CORK's picture

Italian cars remain small & mostly petrol in contrast to most other western European countries.


The above reflects mostly a lack of fixed capital formation . road freight etc.


Italian oil demand reached a peak in the mid to late 1990s just before the first Marios fiscal austerity / core euro transfer operation.

Y1998 : 1.94 MBD

It was a bigger economy then the UK back not so much.

Of the large economies in Europe It has seen the biggest % fall of oil demand.

(In the euro zone fiscal austerity really means a transfer of real resources to the cold dead heart of the Euro zombie.)

This happened both during Mario austerity mark 1

&  the much bigger Mario austerity mark 2


Also much like Ireland (although Ireland was of course far more extreme) & others during the Euro years………….

A liberalization of labour flows was meant to increase “wealth”
Of course it did not.
Its real objective was a extraction of labour value via the destruction of the real remaining capital base.

From Italian demographics wiki

In addition, after centuries of net emigration, from the 1980s Italy has experienced large-scale immigration for the first time in modern history. According to the Italian government, there were 4,570,317 foreign residents in Italy as of January 2011

Such a poor country with a rapidly declining fossil fuel ration cannot now afford such population increases if it is to sustain even a moderate standard of living.




So Between 1978 and 2001 the population was within the 56 million range

What happened in 2002 again ?

Me thinks the real standard of living per person has crashed.


If the US went through such a rapid drop of oil consumption per capita without a domestic currency it would now be enetering third world status..............Italy is now a second world country as no large scale projects was started which would mitigate such a huge drop in consumption such as a French scale tram program.





TNTARG's picture

As I told my family up there three years ago, they've managed to fuck up my beautiful Italy too. Naturally, we could see it coming.

Porca miseria!


(It was explained here and in many sites and it was transparent to anyone with two working neurons that neither austerity nor printing it's the solution for anything if you've moved the real economy elsewhere. Italy did as the US: they "delocalized" - as they call it: delocalizzazione - their industries. Constant less production because factories are elsewhere + more taxation + banking's fraud with derivatives and other nice "financial products" + banksters taking control of governments = bankrupcy (on the basis, moral and then financial, economic, social, political struggle). It hurts my hearth, I love that amazing "penisola").

Dewey Cheatum Howe's picture

You know the bodies in the derivatives cesspool and in general are piling up too high that they can't hide them anymore when the ECB issues statements like this.


Big Brother in Action: EU Wants Power to Sack Journalists; Prime Minister Rajoy Threatens Newspapers Following Corruption Articles

"Big Brother" in Action

In case you have not already realized it, 1984 has come and gone politically. All that remains is how fast we march down the path of "thought suppression". Here are a couple of articles that will make my point.

The Telegraph reports EU wants power to sack journalists

A European Union report has urged tight press regulation and demanded that Brussels officials are given control of national media supervisors with new powers to enforce fines or the sacking of journalists.

The “high level” recommendations that will be used to draft future EU legislation also attack David Cameron for failing to automatically implement proposals by the Lord Justice Leveson inquiry for a state regulation of British press.

A "high level" EU panel, that includes Latvia’s former president and a former German justice minister, was ordered by Neelie Kroes, European Commission vice-president, last year to report on "media freedom and pluralism". It has concluded that it is time to introduce new rules to rein in the press.

“All EU countries should have independent media councils,” the report concluded.

“Media councils should have real enforcement powers, such as the imposition of fines, orders for printed or broadcast apologies, or removal of journalistic status.”

“The national media councils should follow a set of European-wide standards and be monitored by the Commission to ensure that they comply with European values,” the report said. 

Nigel Farage, the leader of Ukip, compared the proposals to “Orwell's 1984”. “This is a flagrant attack on press freedom. To hear that unelected bureaucrats in Brussels want the power to fine and suspend journalists is just outrageous,” he said.

Reflections on "European Values" and a UK Referendum

Financial transactions taxes and agricultural crop subsidies are bad enough. This proposal for "thought police" should scare everyone.

What the hell are "European values"?

Even if there was such a thing, it is absurd and scary to cram them down everyone's throat. If ever there was any justification for Cameron to tell the EU to "go to hell" this is surely it.

Conservatives in UK need to demand an in-or-out referendum now.


The cockroaches don't like the truth spotlight.... Keep it shining folks.

Dewey Cheatum Howe's picture

As Ayn Rand wrote in anatomy of compromise


1. In any conflict between two men (or two groups) who hold the same basic principles, it is the more consistent one who wins.

2. In any collaboration between two men (or two groups) who hold different basic principles, it is the more evil or irrational one who wins.

3. When opposite basic principles are clearly and openly defined, it works to the advantage of the rational side; when they are not clearly defined, but are hidden or evaded, it works to the advantage of the irrational side.

1. Psychologically, the inconsistent person will endorse and propagate the same ideas as his adversary, but in a weaker, diluted form—and thus will sanction, assist, and hasten his adversary’s victory, creating in the minds of their disputed following the impression of his adversary’s greater honesty and courage, while discrediting himself by an aura of evasion and cowardice.

2. The rational (principle, premise, idea, policy, or action) is that which is consonant with the facts of reality; the irrational is that which contradicts the facts and attempts to get away with it. A collaboration is a joint undertaking, a common course of action. The rational (the good) has nothing to gain from the irrational (the evil), except a share of its failures and crimes; the irrational has everything to gain from the rational: a share of its achievements and values.

3. In order to win, the rational side of any controversy requires that its goals be understood; it has nothing to hide, since reality is its ally. The irrational side has to deceive, to confuse, to evade, to hide its goals. Fog, murk, and blindness are not the tools of reason; they are the only tools of irrationality.

The spread of evil is the symptom of a vacuum. Whenever evil wins, it is only by default: by the moral failure of those who evade the fact that there can be no compromise on basic principles.

dcb's picture

hello, I said on this site, you don't appoint a goldman guy unless you want someone who do everything they can to support the banks, hide problems, and is willing to be corrupt. they got exactly what the dr ordered when they appointed him to the ecb. they already knew about him and the greek lies, so of course. it's all about appointing people to continue the cover up. we do the same fucking thing in the us.

Hello: bernanke and Geithner!!

FFox's picture

Ahhh, yes sheeple, perhaps this (more banking fraud) will cause the demand for real money (gold & silver bullion + well researched miners) to gain some chi!

Even (she'll never admit it) Maria Bitcharomo of CNBCrapleTV may buy precious metals!  Something other than her 14K frigging earrings!

So sayeth:

The Fox (trapped in a human body)


No Euros please we're British's picture

"Fitch affirms Monte Paschi (BMPS IM) at BBB; outlook stable "

You just couldn't make this shit up.

Dewey Cheatum Howe's picture

2 out of 3 dentists agree

Standard & Poor's, which relegated Monte dei Paschi to junk status last December, cut its long-term credit rating on Thursday by one more notch to "BB". The agency cited concerns over potential losses from structured finance contracts, which it said revealed a risk of management weaknesses.

Moody's is looking into possibly downgrading it's current rating of Ba2.


I guess we know which agency to not take at face value concerning credit ratings relating to the EU.

Joebloinvestor's picture

Where is the Egan Jones OPINION?

Totentänzerlied's picture

"Italians blame the Democratic Party for the problems at the banks"

So Italians are just credulous and ignorant as everyone else.

TNTARG's picture

"Proprietary trading involves a bank taking trading positions in securities such as stocks or bonds to make profits for itself, rather then trading on behalf of a customer."


NooooooooohhhhhH! No shit! How fucking surprising!!!!!

Those italian mafia boys!

P.S.: If you have any losses to hide, just call Deutsche Bank, JP Morgan or Goldman Sachs. Anzi, call them first: they will make you lose then they'll help you hide the losses.