CEO Of Italy's Largest Bank Surprisingly Resigns

Tyler Durden's picture

The situation in Italy appears to be going from bad to worse. With a confidence vote pending for Tuesday as the government dissolves into chaos for the umpteenth time, and following the resignation of the CEO of one of Italy's largest non-financial corporations (Telecom Italia), the largest bank (by assets) in Italy - Intesa SanPaolo has announced - effective immediately - the resignation of its CEO and replacement with Carlo Messina. According to sources, the now former CEO had lost the confidence of shareholders (which is odd given the bank's stock is near 2-year highs). We can't help but wonder Ayn Rand-like at the devolution of the ruling class in Italy and what happens next (in light of the crumbling manufacturing and production data).


As we noted previously, things do not look so good for Italy (as a reminder the 3rd most indebted nation in the world)...

Italy’s Stability Program targets a 5%-6% primary budget surplus, and 3% nominal GDP growth. Both strike JPMorgan's Michael Cembalest as unrealistic in the context of post-crisis Italy. Italy ran a 6% surplus for a brief moment in the 1990’s but it didn’t last, as it was the result of a prior devaluation helping growth, some asset sales and some tax increases. Only asset sales seem feasible in Italy right now, if anything.


If Cembalest's concerns are correct, Italy will remain a country with almost twice the debt/GDP ratio as the US; unbreakable interdependency of the government, the banks, and the ECB; and low GDP and employment growth. If history is any guide, he will be right as the last few years have seen the biggest collapse in Italian GDP since The Unification in 1861...





Source: JPMorgan


The question remains - why no tearing of the social fabric? or is this diminution of the ruling elite about to bring reality back to the masses?

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Deo vindice's picture

Did he see a crowd coming out of a hardware store with their rope purchases?

MillionDollarAnus's picture

Gransfors Bruks axes.  They're good for chopping a lot more than wood.

Zer0head's picture

I am just a lowly guest here at ZH, but the images that are associated with certain articles (such as this article or the ones on the house senate BS etc) seem to have taken on a certain kind of je ne sais quoi - I'm not sure what it is but I'm guessing ZH must have a new art director

The Big Ching-aso's picture

What the hell does Don Corleone think about all this? I mean I wanna know what the guy in charge thinks here.

bank guy in Brussels's picture

As to why 'no tearing of the social fabric' in Italy, a very good article recently - maybe on ZeroHedge, I forget where - explained just that.

Italian households are quite rich, low indebtedness and high savings. High public debt but one of the lowest household debt ratios in Western Europe. 'Richer than Germans' technically, tho that is skewed by the fact many Germans don't own houses, but rent publicly-owned property at nice rates.

In Italy a huge percentage of its aging population gets a pension, too. Moreover, Italians are not 'loners' and are very comfortable living with family and at home. The pensions are not big - 1000 euros per month is good in Italy - but they add to the savings cushion.

For the pensioners, it is also not so big a deal that prices are stable or getting lower on many goods in a downturn economy.

Yes, entrepreneurs have it tough with choked-off credit ... but the average Italian family is getting by with family support and the savings cushion.

The strong family support in all the Mediterranean countries, in fact, is a key factor in the lack of social revolution so far in Europe ... but that revolution may yet still arrive, quite shortly, in fact

walküre's picture

Good points. Luigi and Ramona getting it on when Nana and Nono having a nap.

philipat's picture

Nerosconi bunga-bungas whilst Rome burns?

Mitzibitzi's picture

Wholeheartedly agree.

Now this is entirely subjective, here... but... my brother is married to a Columbian heiress, whose family has high 10s of millions of dollars in land, property, livestock, etc in Latin America and in Spain, Italy, Portugal. They've stepped up purchases in the European region and in Argentina, Brazil and (work this one out!) bought over 1,000 acres in 'middle of nowhere' Arizona. I asked about the latter and was pointedly told that it was a family matter. I (not with any conviction, since Sylv's family do worry me!) pointed out that I am family. From what I'm told, that is not the case.

lotsoffun's picture

that's very funny.  i'd have lots of fun admitting to being a loser, but i'm not usually.  enjoy the ride while you can - and take some advice.

enjoy the ride and keep your mouth shut.  you'll stay on longer.


Mitzibitzi's picture

I'd love to know your definition of 'loser', buddy. I'm guessing, from your point of view, it's someone who doesn't put personal profit above all other considerations. Hopefully, I'm wrong about that. I'd like to think I am. Would lower the tone of ZH if there really were assholes like you on here who believed in their bullshit. Really, come on, dude! Take a look at the world around you. Use some of those critical thinking skills you'll claim to have but fail to evidence. Brain working yet?

But hey, I really hope you're not a total dick. Would be disappointing.

If that's the case, in your narrow mind, then I'm glad to be a loser. I glory in it. You know why, sport? I have less than 20k in personal debt - end of a mortgage that I can pay off, easily!  from selling shit on Ebay and doing odd jobs that the tax vampires won't find out about unless they spend more on investigating me than they could possibly raise in taxes. I do not have a credit card, nor a loan, nor car payments to meet. I am not my fucking khakis! Though honesty does compel me to admit that I am currently wearing khakis; bought from a thrift store, tags still on 'em, for next to nothing.


LetThemEatRand's picture

Most of the Ayn Rand proponents here are hopeless losers who don't have two dimes.   I have a friend of some relation (wife's friend's ex-husband's sister's boyfriend) who loves Rand.   He brought it up on the beach over drinks.  I almost called him out but I was having drinks on the beach so fuck it.  He's a moocher.  The funny thing is that he doesn't see the irony, especially as I plunked down for the drinks.

Sounds like you married well.  Kudos.

Harbanger's picture

 I have a friend of some relation (wife's friend's ex-husband's sister's boyfriend) :)

You is too funny Lola.   I'm going to use that line.  You almost called him out? Are you sure you didn't almost ask him out?  Be honest Lola,  You'd still be a Showgirl if you weren't married.

NidStyles's picture

Your brother married family, that doesn't make you family, that makes your brother married to the family.

Mitzibitzi's picture

That's true. It does. Does entitle me to a small amount of courtesy, though, I'd have thought. Certainly seemed to entitle 3 of them to it when they crashed in my house for three days last year, rather than pay for a hotel locally. But hey, whatever. Now we both at least know where we stand.

Can't help thinking I'm coming across the wrong way with my comments on this thread. I don't have a problem with my bro marrying into money. Fair play to the guy. He's more than bright enough to make it on his own and was happily doing so before he got hitched (which is, of course WHY he has been able to marry into money). 

What does fucking irritate me, though, was their willingness to accept a few tips from me, that made them a couple of million, while being totally unwilling to throw any info my way - that would realistically make me 20% of what they made off of me. I have 4 kids and don't do credit, so I don't have (nor want) the ability to make the kind of money they do. But throw the dog a fucking bone, y'know?

Hacksaw's picture

It seems you haven't learned the first rule of dealing with rich bastards. Which is, when you have a money maker never share it with them. They'll ace you out, won't be grateful, and never reciprocate.

Kirk2NCC1701's picture

As the fiat monetary Debt system is stretching beyond its limits and the nations are being plundered by its chief architects and players, we're seeing the Balkanization of Europe and the US.

The arrests of the GD opposition in Greece is another Beta-test for the rest.

lotsoffun's picture

i am not being sarcastic.  i am tearing (water in the eyes) up.  family.  working together.  i live in the country that invented breaking up the family structure, they started with slaves and then figured out it was good for all of us.  and today we have for 'family' values to look to - the kardashians.

we  need to start working together and living together and not thinking about what i want now for me right now.


Mitzibitzi's picture

Totally agree with you on that one.

Arius's picture

very thoughtful comment ...

nightshiftsucks's picture

So the citizens of Italy have their savings in the Italian banks that are buying Italian bonds ?

Ar-Pharazôn's picture

yeah keep dreaming that the average person in Italy get 1000 Euros pension. hahahhahaah i m still laughing.....

if average joe can reach a 700 Euros pension he can be happy

Oracle 911's picture

I agree with you totally, only one thing can set up Italy, bail ins with bank holiday. Because lot of  people have as saving more than 100 000 € in savings, if bail in come to town, well riots, unrests and maybe civil war to brake out.

Fredo Corleone's picture

Pop always told us, that behind every great fortune, there is a crime. Isn't that inscribed over the entrance at 200 West Street ?

shovelhead's picture

Then again, your Pop choked to death on an orange peel, so how smart could he really be?

Tippoo Sultan's picture

The Don took a heart attack in the tomato patch, strunz. Get your screenplays correct.

lotsoffun's picture

anybody seen jonnie corzine lately?

macholatte's picture


Look!  What's that? Up there in the sky!

Are those banksters from GS parachuting in to save Italy?


knukles's picture

Si!  Eye-a-resigna because-a I loose-a confidence-a in-a my shareholders.
They-s a be a lotta probolems for a-me.  No more-a bunga bunga.  Do-a deeis and a dooa-dat.  You no make-adah monee.  Theyz a gets a mad as a Guidos a momma.  All-a dey wants a ess a da moneee.
I takea my two leetle underage a neices to a Cannes for a nice a week inada suite. 

(motion of fingers flipping up off of chin)

Tinky's picture

I humbly take back what I said on an earlier thread about Americans lacking proficiency in second languages.

shovelhead's picture

That made me laugh and remember a childhood buddy whose crazy Granddad lived with them and was convinced I understood Italian because I'd smack my buddy's head and say "Capiche?" like his father would occasionally do.

The old guy didn't talk to his family but as soon as I showed up, he'd start chattering like hell. "Why is he talking to me? What's he saying?"

"He says we're trying to kill him for his money and he wants you to take him outta here."

That warm-hearted extended Italian family thing ain't always like you think.

Come to think back, that whole family was nuttier that a bucket of squirrel shit.

Arius's picture

thats a sad story.  people are people everywhere point taken ... however, take a look at the comment above from lotsoffun on Kardashian family values ... food for thought

Ar-Pharazôn's picture

arrivederchi or capiche is not italian.



buzzsaw99's picture

how big will his 2013 bonus be i wonder?

pauhana's picture

Jeez, I thought it was the Intesa CEO who would throw himself out a window . . . .

thereisonlyonelaw's picture

The situation in Europe is fucked up. They only have two options: default or monetize. While I think a japanese default has 0% chance of happening, an italian default, followed by defaults everywhere else in the EU, I am not so sure.

max2205's picture

Why is the euro dollar so high?

Pure Evil's picture

Same reason for US stock markets being so high.

Dey be smokin' dat Obama hopium.

BurningFuld's picture

I peg the Euro at about two Euros to one USD.  ie. worth 50 cents.

lolmao500's picture

It's about to go booooooooom and bring down Italy and Europe with it.

/it's about fucking time

Devotional's picture

unfortunately,you may be correct.

W74's picture

"fortunately, you may be correct."

Fixed it for ya.

Hughing's picture

No fuckin' chance. There are still honest people to screw and definitions to change Print print print

RafterManFMJ's picture

He resigned? Well, no matter what you believe, that's GOT to be a positive sign? 

WTFUD's picture

Everything in Italy is corrupt! Only one man and that is Grillo can try to make a fist of matters. This is what al of my italian friends tell me.

walküre's picture

You know he's a clown, right?

Life is still the best joke of all.

I love Grillo.

Pure Evil's picture

Yep, one more charade in a long line of charades.

And, they call Turkey the sick man of Europe.

bank guy in Brussels's picture

Article critiquing Beppe Grillo as a tool of the US regime and its banksters, a fake 'reformer'

'Italy's Grillo exposed as tool of [US] State Department, Goldman Sachs'