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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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Sun, 09/29/2013 - 18:07 | 4004040 Deo vindice
Deo vindice's picture

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

Sun, 09/29/2013 - 18:10 | 4004046 MillionDollarAnus
MillionDollarAnus's picture

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

Sun, 09/29/2013 - 18:16 | 4004057 Zer0head
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

Sun, 09/29/2013 - 18:25 | 4004072 The Big Ching-aso
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.

Sun, 09/29/2013 - 18:39 | 4004093 bank guy in Brussels
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

Sun, 09/29/2013 - 18:50 | 4004111 walküre
walküre's picture

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

Sun, 09/29/2013 - 20:53 | 4004373 philipat
philipat's picture

Nerosconi bunga-bungas whilst Rome burns?

Sun, 09/29/2013 - 19:14 | 4004155 Mitzibitzi
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.

Sun, 09/29/2013 - 19:30 | 4004187 lotsoffun
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.


Sun, 09/29/2013 - 20:08 | 4004273 Mitzibitzi
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.


Mon, 09/30/2013 - 00:19 | 4004712 LetThemEatRand
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.

Mon, 09/30/2013 - 02:03 | 4004784 Harbanger
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.

Sun, 09/29/2013 - 20:03 | 4004262 NidStyles
NidStyles's picture

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

Sun, 09/29/2013 - 20:26 | 4004308 Mitzibitzi
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?

Mon, 09/30/2013 - 01:24 | 4004764 Hacksaw
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.

Sun, 09/29/2013 - 19:25 | 4004178 Kirk2NCC1701
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.

Sun, 09/29/2013 - 19:27 | 4004181 lotsoffun
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.


Sun, 09/29/2013 - 20:32 | 4004322 Mitzibitzi
Mitzibitzi's picture

Totally agree with you on that one.

Sun, 09/29/2013 - 21:04 | 4004386 Arius
Arius's picture

very thoughtful comment ...

Mon, 09/30/2013 - 00:15 | 4004714 nightshiftsucks
nightshiftsucks's picture

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

Mon, 09/30/2013 - 03:08 | 4004816 Ar-Pharazôn
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

Mon, 09/30/2013 - 04:22 | 4004836 Oracle 911
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.

Sun, 09/29/2013 - 19:01 | 4004136 Fredo Corleone
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 ?

Sun, 09/29/2013 - 19:52 | 4004242 shovelhead
shovelhead's picture

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

Sun, 09/29/2013 - 20:25 | 4004306 Tippoo Sultan
Tippoo Sultan's picture

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

Sun, 09/29/2013 - 19:22 | 4004173 lotsoffun
lotsoffun's picture

anybody seen jonnie corzine lately?

Sun, 09/29/2013 - 18:29 | 4004076 macholatte
macholatte's picture


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

Are those banksters from GS parachuting in to save Italy?


Sun, 09/29/2013 - 18:46 | 4004107 macholatte
macholatte's picture




Apple iOS 7 iPhone 5S Commercial


Sun, 09/29/2013 - 18:13 | 4004043 knukles
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)

Sun, 09/29/2013 - 18:52 | 4004122 Tinky
Tinky's picture

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

Sun, 09/29/2013 - 20:14 | 4004282 shovelhead
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.

Sun, 09/29/2013 - 21:07 | 4004401 Arius
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

Mon, 09/30/2013 - 03:12 | 4004821 Ar-Pharazôn
Ar-Pharazôn's picture

arrivederchi or capiche is not italian.



Sun, 09/29/2013 - 19:17 | 4004160 Burticus
Burticus's picture

It'sa badda lucka!

Sun, 09/29/2013 - 18:11 | 4004047 buzzsaw99
buzzsaw99's picture

how big will his 2013 bonus be i wonder?

Sun, 09/29/2013 - 18:10 | 4004048 pauhana
pauhana's picture

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

Sun, 09/29/2013 - 18:13 | 4004053 thereisonlyonelaw
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.

Sun, 09/29/2013 - 18:23 | 4004065 max2205
max2205's picture

Why is the euro dollar so high?

Sun, 09/29/2013 - 18:26 | 4004071 Devotional
Devotional's picture


Sun, 09/29/2013 - 18:34 | 4004083 Pure Evil
Pure Evil's picture

Same reason for US stock markets being so high.

Dey be smokin' dat Obama hopium.

Sun, 09/29/2013 - 18:40 | 4004095 BurningFuld
BurningFuld's picture

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

Sun, 09/29/2013 - 18:14 | 4004054 lolmao500
lolmao500's picture

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

/it's about fucking time

Sun, 09/29/2013 - 18:23 | 4004066 Devotional
Devotional's picture

unfortunately,you may be correct.

Sun, 09/29/2013 - 19:41 | 4004205 W74
W74's picture

"fortunately, you may be correct."

Fixed it for ya.

Sun, 09/29/2013 - 19:02 | 4004137 Hughing
Hughing's picture

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

Sun, 09/29/2013 - 18:16 | 4004056 RafterManFMJ
RafterManFMJ's picture

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

Sun, 09/29/2013 - 18:26 | 4004068 WTFUD
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.

Sun, 09/29/2013 - 18:35 | 4004087 walküre
walküre's picture

You know he's a clown, right?

Life is still the best joke of all.

I love Grillo.

Sun, 09/29/2013 - 18:37 | 4004089 Pure Evil
Pure Evil's picture

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

And, they call Turkey the sick man of Europe.

Sun, 09/29/2013 - 18:45 | 4004103 bank guy in Brussels
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'

Sun, 09/29/2013 - 19:13 | 4004154 ArgentoFisico
ArgentoFisico's picture

Pure bullshit

Mon, 09/30/2013 - 03:28 | 4004817 Escapeclaws
Escapeclaws's picture

Prophetic article on Grillo. Warning: to be read with dictionary at hand. Tarpley writes for those having the equivalent of a 19th century 8th grade vocabulary. He also avoids helpful clarifiers such as "fuck" or "shit(e)" which may lead to a loss of comprehension for his Anglo-Saxon readers. Warning #2. Tarpley uses a lot of references to history which may be off-putting for American readers--suggest American readers just ignore the references and go for getting the gist of the article. Warning #3: Tarpley offends libertarians in his belief that the Tea Party is a demagogic movement. This comes from having steeped himself in history which occasionally causes him to have an other-than-insiders point of view. See warning #2.

Thumb-typed on my iPad

Sun, 09/29/2013 - 18:24 | 4004070 max2205
max2205's picture

Spy down 12.50 gap down...good start to a -30 close Monday

Sun, 09/29/2013 - 18:36 | 4004086 Landrew
Landrew's picture

Don't tease me! I bought the Oct. MSFT puts @ the money after the run-up. Love that roll the dice!

Sun, 09/29/2013 - 18:29 | 4004077 ChaosEquilibrium
ChaosEquilibrium's picture

THIS IS IT!!!.....Italian banks sitting on 400 billion leveraged in Italian Sovereign bonds that will be BLOWING OUT in approximately 9 hours......Draghis OMT cannot save Italy......US Banks and HF's leveraged to the ASS in Italian yield-chasing Debt.


Toss in Greece.....US Government shutdown......IT IS OVER....Prepare and Hold on TIGHT!!

Sun, 09/29/2013 - 18:58 | 4004133 cossack55
cossack55's picture

Heard "wolf" too many times to get my hopes up.  Apparently retribution, like revenge, is a dish best served cold.  Oh well.

Sun, 09/29/2013 - 18:29 | 4004078 BlueStreet
BlueStreet's picture

It's the Gartman post-CNBS 'buy, buy, buy, nothing can derail this market' Friday appearance top. Dude is golden every time.  

Sun, 09/29/2013 - 19:30 | 4004185 tao400
tao400's picture

It's true. He is literally wrong every time. But he is a trader and gets out of his positions quick

Sun, 09/29/2013 - 21:15 | 4004413 Arius
Arius's picture

"wrong everytime" ... thats not good is it? i mean for his clients....

Sun, 09/29/2013 - 18:32 | 4004080 GrinandBearit
GrinandBearit's picture

That pic of Musolini is great!  Is that the face he made before they hanged him?

Sun, 09/29/2013 - 18:34 | 4004081 walküre
walküre's picture

Italy needs the Lira back. Devaluation is their only game. Frig, we all need to go that route if we ever want to see the light of day again. There is no other way.

Got gold?

Sun, 09/29/2013 - 18:33 | 4004082 ruffian
ruffian's picture

seriously, not read all the comments but this bullshit with the italian govt/banking system has been orchestrated and co-ordinated to prop up the $ as once again USA shows it's complete incompetence. Excuse for the FED/Bankster deep pocket algos to keep the $ propped up and looking "safe"

Sun, 09/29/2013 - 21:21 | 4004423 Non Passaran
Non Passaran's picture

In other words, go long the euro, short USD folks!
Okay, makes sense, I'm on it, just give me a day to get rid of my PMs, chief!

Sun, 09/29/2013 - 18:36 | 4004084 WTFUD
WTFUD's picture

It's my ( bunga bunga ) party and i'll fuck if i want to. . . you would fuck too if this happened to you!

When the moon meets the sky like a big pizza pie that's amore. . . bells will ring, ding a ling ling, mi a bella. . .

Sun, 09/29/2013 - 18:36 | 4004085 NoWayJose
NoWayJose's picture

More likely the CEO is guilty of something that the bank wants to hide.

Sun, 09/29/2013 - 18:36 | 4004090 walküre
walküre's picture

he's still alive, yes? If he was in Zurich otoh....

Sun, 09/29/2013 - 18:44 | 4004100 Haager
Haager's picture

I think he was given several choices: to resign, to fall out of the window unexpectedly, to shoot himself accidentally three times, to hung himself by surprise with the telephone cord or to slip into the bathtub followed by drownning whlst heavily drunk. He has chosen the difficult route. 

Sun, 09/29/2013 - 18:55 | 4004126 Stonedog
Stonedog's picture

You forgot driving his car at 155 mph while heavily intoxicated and crashing into something or and exploding or driving over a cliff...

Sun, 09/29/2013 - 18:40 | 4004092 Stonedog
Stonedog's picture

That is the sound of the shit officially hitting the fan...

Sun, 09/29/2013 - 18:57 | 4004131 stant
stant's picture

i guess that uberti or pietta dealership is out of the question now

Sun, 09/29/2013 - 20:31 | 4004319 shovelhead
shovelhead's picture

I think Uberti will be around for a while yet.


Sun, 09/29/2013 - 19:17 | 4004162 Make_Mine_A_Double
Make_Mine_A_Double's picture

'Italy's Stability Program'

If you can repeat that 10 times without manical laughter I'll send you a nice crisp Bennie.

Sun, 09/29/2013 - 19:39 | 4004208 dominating
dominating's picture

Think Jeff Skilling... Enron. Probably means a year left or so before Intesa blows up. CEO's like... "everything was fine when I left guys"

Sun, 09/29/2013 - 19:44 | 4004223 Kirk2NCC1701
Kirk2NCC1701's picture

They're all fucked:  Wall St Elites (GS+) made sure that the has forced our toxic sludge onto other countries, thus making their leaders and bankers beholden to us.  Unless they band together and tell the Fed to fuck off, they're all screwed.

Sun, 09/29/2013 - 20:08 | 4004278 Paracelsus
Paracelsus's picture

The Italians heavily into Spanish real estate market,exactly like the UK and German banks were into Irish real estate market.

The problem when marketing anything is when there is no BID,at all.....

Not that long ago Ireland (and Iceland) were held up as shining models for the world.NOW THEY ALL NEED BAILOUTS?!

Sun, 09/29/2013 - 20:18 | 4004289 Randoom Thought
Randoom Thought's picture

Whatsa to wonder? He a was a given an offer he could not refuse.

Sun, 09/29/2013 - 20:22 | 4004302 philosophers bone
philosophers bone's picture

Looks like the scotch tape holding the euro together is starting to peel off. Who could have guessed coming right after the German elections? It was so quiet for months and didn't CNBC say that Europe appeared fixed?

Sun, 09/29/2013 - 20:35 | 4004330 Mamzer Ben Zonah
Mamzer Ben Zonah's picture
Gransfors Bruks large Swedish broad side axe

Ought to come in handy at a time like this.

Sun, 09/29/2013 - 23:37 | 4004687 The Wisp
The Wisp's picture

I got the American Version, stashed right next to my Hoard of Barter Ammo  :)

Sun, 09/29/2013 - 20:46 | 4004351 shovelhead
shovelhead's picture

the now former CEO had lost the confidence of shareholders


Translated from Italian meaning got caught doing something so bad even the muppets found out.

Sun, 09/29/2013 - 21:36 | 4004456 orangegeek
orangegeek's picture

Peter Griffin knows what to do:

Sun, 09/29/2013 - 22:00 | 4004530 jonjon831983
jonjon831983's picture

Cashin out

Mon, 09/30/2013 - 03:52 | 4004832 lakecity55
lakecity55's picture

Wow, Bath House looks scared pale in that photo with the story!

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