I'll Hold Yours If You Hold Mine: The Italian Ponzi Comes Home

Tyler Durden's picture

Via Peter Tchir of TF Market Advisors,

So, according to this, Mediobanca is the largest shareholder of UniCredit.  I guess it could be custodial, but does explain why they are part of the underwriting group that backstopped the deal.

If you combine the Central Bank of Libya, Libyan Investment Authority, and Libyan Foreign Bank holdings, then they are actually bigger than Mediobanca.

At the risk of making a mountain out of a mole hill, Unicredit is the largest holder of Mediobanca (8.7% according to Bloomberg)

Remember when CDO's all bought each other's BBB and BB tranches, because no one else would?

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hugovanderbubble's picture

Peter and Generali Assecurazioni

Tyler and ZH knows perfectly that GENERALI is in BK


Hugh_Jorgan's picture

Gentlemen, start your death spiral...

hedgeless_horseman's picture



Please remind me again.  Who is the largest holder of US TreAAsuries?  Oh, that is right, The Federal Reserve.

LawsofPhysics's picture

Perhaps, but it seems like the circle is getting notably smaller.  Either that or the game is going "underground".

Pladizow's picture

This seems familiar, Oh Yeah - BofA owns 34% of Black Rock and Black Rock is the largest owner of B of A shares.

Yet Black Rock, the NY Fed and Pimco all filed suites against BofA.

Perhaps the heads of the family have once again given an order to wack a made man!

LawsofPhysics's picture

Many will be getting "whacked", but don't hold your breath on it being anyone in the elitist's club.  By extension of your analogy, does this mean that JPM is "the godfather"?

pods's picture

Pretty soon old Ben is going to have to play "The Stranger."



Agent P's picture

I never thought about trying that.  Sorry it took me so long to comment on your post...I'm typing with one hand at the moment.

economics1996's picture

Eh gads, I never knew that.

centerline's picture

Yup.  With escalating counterparty exposure.  When the tipping point happens, everyone goes down.

Just more proof of what Tyler has been pointing out for quite some time now.

EscapeKey's picture

That's totally different for reasons which should seem obvious to you by now, and anyway, that the Keynesians don't really have time to go into details about now.

Anyway, snark aside, Chinese treasury holdings have been stagnant over the past year, which, due to the spiralling total US debts, now account for only 7.6% of the total pie, rather than the 8.7% last year.

Their incredible shrinking (but static) stake.

LawsofPhysics's picture

Yes, it would seem that "dilution" can solve many problems in addition to pollution.

StychoKiller's picture

Hmm, all those depreciating T-Bills...if only there were some "hard" currency to exchange them for...

smlbizman's picture

alright stand, hand over heart and listen..the big "o" is talking...you will listen and agree..

a growing concern's picture

Mobius strip death spiral!

fonzanoon's picture

Peter I thought you said the other day that LTRO would be enough to help the European Banks?

oogs66's picture

He was wrong! Or flip flopped. Or just tries hard to dig deep

Ghordius's picture

"At the risk of making a mountain out of a mole hill"


Cognitive Dissonance's picture

Sounds more like a musical chairs circle jerk to me.

Whoops! Who turned off the music?

GeneMarchbanks's picture

Ah, CD do I just have to follow you around and make corrections indefinitely?

2008 the music stopped, 2012 we all went soft.

Cognitive Dissonance's picture

I did not say when the music stopped, only that it had. :>)

StychoKiller's picture

"It's got a good beat and you can dance to it." (the "Jerk", that is!)  :>D

economics1996's picture

Bernanke needs to fucking print, wait, didn't he do that?  Credit swaps or some shit?

lolmao500's picture

What a ponzi.

What's sad about all this economic crap is that it diverts attention from real problems... like the CHERNOBYL reactor needing a new DOME to you know, avoid big problems....


Ukraine raises $788m for Chernobyl dome

An international conference has raised $788m to help build a containment shell at the site of the Chernobyl nuclear disaster, falling short of Ukraine's $1bn fundraising target.


The ruins of Chernobyl's Number Four reactor, which blew up in April 1986 after a safety experiment went wrong, are housed in a cement structure.

The structure is slowly crumbling and there are fears that radiation from more than 200 tonnes of nuclear material may escape into the atmosphere.


"Much of the money comes from the European Union and the European Bank of Reconstruction and Development," he said.

A prevailing southeast wind carried a cloud of radioactivity over Belarus and Russia and into parts of northern Europe.


But eh, keep ignoring this and keep printing money for the bankers... what about the ECB prints a few billions for this?

a growing concern's picture

Do dollar bills insulate from radiation?  If so, Tiny Tim can load up some C130s and air drop pallets of Benjamins to plug the holes in the radiation dome.

HardlyZero's picture


We can turn the whole fallout region into a Business Opportunity Center, provide zero business taxes.  We can setup all the banking headquarters there and run free popcorn from the dome (free heat source).  This could really help develop the region into a "banking powerhouse" .

Over time...the banking problem will "go away".

Has anyone else thought of that ?

economics1996's picture

No, most of us were thinking of the old school way of hanging them about 10 feet off the ground way.

EconSammie's picture

Last night I watched the Jeff Randall Live show on Sky News and the economist Shaun Richards said that he thought that Unicredit was on its way into deeper trouble. Here is his update on the subject.

Firstly let me welcome any new readers who are reading this blog after seeing me be interviewed on Jeff Randall Live on Sky News yesterday evening. For those who did not see the interview I gave my opinion on  the Italian bank Unicredit’s prospects and gave two major problems for it. These are its holdings of Italian government bonds ( and indeed other sovereign bonds) where prices have fallen heavily (over the last year or so the benchmark Italian ten-year bond yield has risen from 4% to 6.93%). And also that lending in foreign currencies to individuals and businesses in other nations, particularly in Hungary, was going wrong. I highlighted the way that the Hungarian Forint had hit a new low against the Euro and that in spite of moves by the Swiss National Bank it was heading lower against the Swiss Franc too. This means that those who borrowed in Swiss Francs and Euros but repay in Hungarian Forints have a problem which means that the lender also has a problem.


I note that today two of these matters have progressed further. Firstly the Hungarian Forint has fallen to a further low against the Euro of 321.68 this morning and secondly the Unicredit share price has fallen by 7% today to 5 Euros after falling by 14% yesterday


Jlmadyson's picture

Gollum says; Ponzi! Ponzi! Ponziiiiii! Cough!

TzaristBondHolder's picture

Replaying the Margin Call movie only this time there are no buyers and they buy themselves!  

Seasmoke's picture

i help you, you help me......fuck everyone else

Sizzurp's picture

Nothing a few zeros on Bernanks screen won't fix.  A few keystrokes and "Ahhh that was strenuous, now off to the club for lunch".

williambanzai7's picture


This is a foundation of modern finance now.

Irish66's picture

Amazing how clear that is and the color just pops

MsCreant's picture

Alternate to Euro Bail:

"Euro Fail"

"Euro Flail"

"Euro Check Kiting Zone"

Nice work

HardlyZero's picture

Eurotic Fluffer.

Eurotic hand-job ?


Euromancer (sorry William Gibson, author of Neuromancer).

hedgeless_horseman's picture



Is one pen black ink, and the other red ink?  Or are they both red ink?

MsCreant's picture

I know I'm seeing red. So do a lot of folks.

williambanzai7's picture

I can't tell you how rewarding it is to be able to take images and pictures that I loved all my life and now adapt them to current use. It really is a creative rush.

ucsbcanuck's picture

Great. Let the shitstorm begin. My popcorn was going cold. 

lolmao500's picture

Yep, everything I learned at school on economics doesn't apply anymore.

s2man's picture

That's what I told my son, who is enjoying his college econ class.

economics1996's picture

The economic text books are full of shit.  I teach the shit.  All the Keynesian modeling crap is BS.  Tell your kid to suck it up, pass the class, and get some Murray Rothbard to clear his head out after the class.




The last one is the shit I uncovered in text books that was pure 100% lies.  Enjoy!

valley chick's picture

they actually teach this shittt? /sarc