Bank crisis: rating suspended for Monte Paschi, Widiba and Deutsche Bank

Altroconsumo had already suspended its rating on Monte Paschi and now proceeds in the same direction with Widiba despite solidity indicators are good (46,74% both for Cet1 ratio and total capital ratio).

Monte Paschi is in difficulty after the European Central Bank turned the attention to the problematic loans of the group asking their reduction to 32,6 billion within 2018. Respecting this request means further loss for an amount of 3 billion euros with two effects:

• reduction of group endowment
• new capital increase.

Moreover, Monte Paschi situation risks to get Widiba involved. Widiba employs the 90% of its activities in credits towards MPS. For this reason, Altroconsumo suspends Widiba rating too.

In addition to this, Altroconsumo suspends its rating on Deutsche Bank.
The IMF defines Deutsche Bank the riskiest bank in the world due to its high exposure to derivatives; their value is more than 50.000 billion euros: 20 times the German GDP.

As a consequence, Altroconsumo suggests to sell MPS and Deutsche Bank shares and obligations and to close Widiba deposits. Here, it is possible to find information to control banks solidity.

On july the 29^th , the European authorities will release the results of the new stress tests on the most important Italian banks. Altroconsumo asks for a Government intervention to avoid the risks of a confidence crisis sprawling from a single bank to the entire banking sector. 


(ITALIAN VERSION)